Nairobi — Electricity prices are likely to edge up slightly in the coming months even as the government sought to assure Kenyans that the impact will be minimal, MPs were told.
Appearing before the committee chaired by Sessional Chair Lugari MP Nabii Nabwera, Energy Principal Secretary Alex Wachira said the anticipated increase would stem from fuel and foreign exchange adjustments but insisted mitigation measures are in place to keep costs stable.
PS Wachira explained that power system anchored on hydropower, geothermal, wind, solar and thermal generation provides a buffer against sharp price spikes.
"In the long run, depending on how much thermal generation we deploy, there may be a small effect on the pass-through cost of power. However, due to the good rains we have received, this effect is likely to be very insignificant," he said.
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A key factor is the continued use of thermal power generated using diesel and heavy fuel oil especially in off-grid areas such as Wajir, Marsabit and Lodwar, as well as during peak demand periods.
When global or local fuel prices rise, the additional cost is passed on to consumers through the fuel energy charge on electricity bills.
Compounding this is the forex adjustment, as some power inputs, including imports from neighbouring countries and certain fuel purchases, are paid in foreign currency. Any weakening of the Kenyan shilling therefore pushes electricity costs higher.
However, lawmakers pressed the ministry to clarify whether rising diesel costs particularly for off-grid towns such as Wajir, Mandera, Marsabit and Lodwar would translate into higher bills for all consumers.
The PS confirmed that electricity tariffs are averaged nationally, meaning any marginal increase in fuel costs is distributed across all users.
"When there is a marginal increase in fuel energy or forex adjustment costs, it is spread across the entire value chain. That is why Kenyans in off-grid areas pay the same as those connected to hydropower," he told the committee.
Despite these pressures, the government maintains that the expected increase will be marginal. This is largely due to improved rainfall, which has significantly raised water levels in key dams, allowing for increased hydropower generation, one of the country's cheapest energy sources.
He pointed to rising water levels in key dams, noting that increased hydropower generation is expected to reduce reliance on expensive diesel-powered plants.
"We are ramping up hydro generation as dam levels improve. This will lower the use of thermal power and help maintain stability in electricity prices," Wachira added.
He said the government is also increasing electricity imports from Ethiopia and Uganda, while prioritising renewable sources to further reduce dependence on thermal generation.
But MPs warned that even marginal increases could have a ripple effect on the economy, given electricity's central role in production.
"Electricity is a key factor of production. Kenyans want clarity on whether the increase will be so minimal that it does not affect businesses," said the Aldai MP.
Delayed Projects
The session also laid bare mounting frustrations over stalled electrification projects across the country, with legislators accusing contractors of abandoning sites after high-profile launches.
Lugari MP Nabwera pointed accusatory fingers on the Energy PS accusing him of engaging in flamboyant launches which ultimately lead to incomplete launches.
"You go somewhere, when the president is visiting, you mobilize all trucks of rail and all trucks of agency to show public that there is some work. And then, as you take to your choppers, the trucks also take off. MPs feel that you are directly jeopardizing their chances of re-election," Nabwera noted.
Teso South MP Mary Emase cited incomplete last-mile connectivity projects, some of which have remained dormant for months claiming the contract across the large western region has been assigned to one contractor who is overwhelmed when it comes to implementation.
"After launching these projects, contractors disappear. Some of the holes dug for poles have already been covered by soil," said Teso South MP Mary Emase.
Wachira attributed the delays to funding constraints and procurement challenges, particularly in donor-funded projects where contractors are responsible for both materials and execution.
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He disclosed that funds allocated for the 2025/2026 financial year had been exhausted by December, forcing the ministry to seek additional financing under Article 223 to clear pending bills.
"We have now paid most contractors and expect to see faster implementation moving forward," he said.
On connectivity progress, the PS said electricity connections had risen from 8.8 million in 2022 to 10.1 million, defending the ministry's performance despite the delays.
He also announced that Lodwar town will be connected to the national grid by the end of the year, a move expected to significantly cut electricity costs in the region by replacing diesel generation.
Despite the assurances, MPs cautioned that delayed projects and what they termed as ceremonial launches risk eroding public trust and hurting political goodwill.
Nabwera warned that failure to deliver on promises could have political consequences.
"These actions are raising serious concerns on the ground and could undermine confidence in both leaders and the government," he said.
