Kenya Power warns of looming tariff hike over counties wayleave charges
Kenya Power also pointed out that, under the Energy Act, no levies should be imposed on energy infrastructure.
Electricity consumers may soon face higher bills of up to 30 per cent as Kenya Power considers revising tariffs due to a looming financial burden from wayleave charges imposed by counties.
A wayleave charge is a fee imposed by landowners or authorities (such as county governments) for granting permission to utility companies like Kenya Power to install and maintain infrastructure such as power lines, water pipes, or fibre-optic cables on their land.
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Kenya Power Chief Executive Officer Joseph Siror revealed that if counties enforce these levies, the power distributor would need an additional Sh63.8 billion, a cost that would inevitably be passed on to consumers.
“If this cost is factored into the tariff, we are looking at an increase of over 30 per cent in electricity prices. Consumers are already feeling the strain of high tariffs, and industries will face even greater challenges,” Siror said during a meeting between Kenya Power and the Kenya Editors’ Guild.
The introduction of wayleave charges, he explained, would significantly impact manufacturing costs, resulting in increased prices for commodities. He cited Nairobi County as an example, noting that with 4,032 kilometres of electricity network in the city alone and a charge of Sh200 per meter, the annual wayleave claim amounted to Sh806.4 million.
“People are already complaining that the tariff is high. If this is incorporated, it will pose a serious challenge for industries. The cost of products in the Kenyan economy will rise substantially, making it difficult to compete with other countries,” he said.
Siror also raised concerns about the growing debt owed to Kenya Power, which stood at Sh26.7 billion as of March 2025 — a 32.94 per cent increase from the previous year. Households accounted for the biggest share of unpaid bills, with their debt rising by 22.22 per cent from Sh11.1 billion to Sh13.57 billion.
Major defaulters
County governments were flagged as major defaulters, with their debt surging by 85 per cent to Sh4.26 billion. National government agencies and state institutions also saw their arrears rise to Sh3.32 billion, reflecting a 48.06 per cent increase.
“Debts owed by large power consumers, including industries, have increased by 39.06 per cent to Sh1.97 billion, while small and medium enterprises (SMEs) have seen their debt climb to Sh3.58 billion, an 18.57 per cent increase,” Siror said.
Of particular concern, he noted, was the prolonged non-payment by county governments, whose debts now exceed 210 days, more than seven months, far beyond the standard 90-day debt cycle observed in other customer segments.
Addressing concerns about high electricity costs, Siror clarified that the base tariff has actually decreased over the years.
“In 2022-2023, the tariff stood at Sh19 per unit, whereas in 2024-2025, it has reduced to Sh18.16 per unit,” he said.
Tariff adjustments
He explained that tariff adjustments are governed by the Energy and Petroleum Regulatory Authority (EPRA) and are influenced by factors such as power generation costs, infrastructure expansion, currency fluctuations, inflation adjustments and government-imposed taxes.
Kenya Power also pointed out that, under the Energy Act, no levies should be imposed on energy infrastructure. However, if county governments push forward with the proposed charges, the financial strain could disrupt the sector.
To address the rising debt, Siror said Kenya Power has implemented measures such as an online billing portal and structured payment plans. Customers are given a 14-day window to settle their bills, after which they receive reminders via phone calls and notices before disconnection.
However, he said critical services such as hospitals and street lighting remain exempt from disconnection to ensure continued service.
Siror warned that failure to resolve these financial challenges could hinder investments in energy generation, transmission and network expansion.
“Instead of allocating funds to infrastructure development, resources would be diverted toward covering the proposed levies, potentially slowing down economic growth,” he said.
“This is a huge concern for businesses relying on stable and affordable electricity. If these charges are enforced, we will likely see reduced investments and a slowdown in industrial growth.”
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