Kenya: New Rules Open Kenya Power Grid to Private Electricity Traders

Nairobi — The government has introduced new regulations allowing private electricity generators, large consumers and retailers to trade power through a liberalized market system that opens the national grid to non-discriminatory access.

The framework is contained in the Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2026, announced by Energy Cabinet Secretary Opiyo Wandayi.

The regulations seek to modernize electricity trading and improve efficiency in power distribution and supply.

Under the new framework, Kenya's electricity market will include wholesale and retail segments for bulk power supply, alongside expanded regional electricity trade within the East African region.

The market will comprise power generators, transmission and distribution companies, retailers, importers, exporters and eligible consumers.

Electricity trading will be conducted through bilateral contracts, spot markets and forward contracts.

According to the regulations, all market participants will be required to submit performance security as guided by the system operator.

The rules also provide for coordinated system operations among countries whose electricity systems are interconnected with Kenya or linked through the Eastern Africa Power Pool.

The regulations introduce non-discriminatory open access, allowing different entities to use the national electricity grid for power transmission under regulated terms.

Wandayi said the reforms are expected to improve reliability of electricity supply across the region while encouraging investment in power generation, transmission, distribution and retail supply.

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