Nairobi — Electricity costs declined by Sh0.27 per kilowatt-hour (kWh) in June, providing relief to households and businesses grappling with rising operating expenses, Energy and Petroleum Cabinet Secretary Opiyo Wandayi has announced.
Wandayi attributed the reduction to a drop in the Foreign Exchange Adjustment component, lower Fuel Energy Costs (FEC), and increased electricity generation from hydropower plants.
Speaking after a meeting with representatives from the manufacturing sector, the Cabinet Secretary said the government remains focused on maintaining affordable and predictable energy costs to support economic growth and industrial competitiveness.
"Our priority as Government is to ensure the long-term sustainability of operations across the energy sector. We are keenly aware that the cost of doing business has a direct impact on competitiveness, investment and livelihoods," said Wandayi.
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"We remain committed to maintaining a stable and predictable environment that supports positive cash flow for industry players, safeguards jobs and preserves confidence in the market."
The reduction comes as businesses continue to face pressure from high fuel prices and broader inflationary challenges that have increased production and transport costs.
To further lower energy costs for manufacturers, Wandayi said the government is promoting the Time-of-Use tariff programme, which encourages industries to shift part of their operations to off-peak periods when electricity tariffs are lower.
The programme is intended to improve energy efficiency while reducing operating expenses for large power consumers.
The Cabinet Secretary also signaled a possible reduction in diesel prices during the next monthly fuel review, a move expected to ease costs for transporters, farmers and manufacturers.
"In line with the commitment made by His Excellency the President to the public transport sector and other industry players, the Government will ensure further reduction in diesel prices in the next monthly review, recognising that diesel powers transport, agriculture, manufacturing and the wider economy," he said.
"Lower diesel prices ultimately translate into lower costs for businesses and greater relief for Kenyan families."
The remarks come at a time when manufacturers have raised concerns over rising production costs, particularly following recent increases in fuel prices linked to global supply chain disruptions and geopolitical tensions in the Middle East.
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Industry players have consistently called for measures to lower energy costs, arguing that affordable electricity and fuel are critical to enhancing Kenya's competitiveness as a manufacturing and investment destination.
