Govt Announces Drop in Electricity Prices & Future Plans

Kenyans can finally breathe a sigh of relief after Treasury Cabinet Secretary John Mbadi announced a significant drop in the prices of electricity.

Speaking outside Treasury buildings in Nairobi on Thursday afternoon, the finance minister attributed the drop in electricity tariffs to the successive profits made by the Kenya Power Company (KPC) over the past few years.

The CS disclosed that the government had already begun taking measures to ensure that profits made by the state-owned operator were passed on to the consumers in terms of cheaper electricity.

“Kenya power profits should be passed to the general public in terms of reduced tariffs and if you are keen, you will realise that the electricity bills according to my resorts, have been going down,” the CS announced.

To fully address the matter, Mbadi urged Kenyans still experiencing higher electricity bills to submit their reservations for the government to take necessary action.

“If the current rates are not sufficient enough, the government will take measures to pass the benefits to the consumers because the cost of energy is a concern of the government,” Mbadi said.

Mbadi’s announcement comes against the back of successive profitability by Kenya Power mainly pegged on the growth in revenue, and electricity sales as well as decreased finance costs due to the strengthening of the Kenyan shilling.

Kenya Power recently announced its net profit of Ksh9.97 billion for the half-year ending December 31, 2024, a significant increase from the same period in 2023. 

Speaking on January 31, Kenya Power’s Managing Director Joseph Siror said the increase in electricity unit sales was driven by higher consumption as a result of improved network reliability, the connection of new customers and improved outage resolution.

He noted that the electricity consumption was heavily supported by the availability of critical materials including meters and transformers.

“At the core of our strategy is a commitment to powering people for better lives while maintaining a sharp focus on operational excellence,” Siror told stakeholders.

“Looking ahead, we are committed to sustaining our improved financial performance through targeted initiatives that enhance efficiency and diversify revenue streams to drive long-term growth.”