Inside the electricity squeeze as Kenya Power posts Ksh24.99B profit
Kenya Power has posted a Ksh24.99 billion profit after tax for the financial year ended June 2026, even as households and businesses continue to grapple with the rising cost of electricity and fewer units for the same amount of money. The utility’s profit increased by 2.13 per cent from about Ksh24.4 billion recorded in the […]
Kenya Power announced a Ksh24.99 billion profit after tax for the financial year ending June 2026, as households and businesses continue to struggle with rising electricity costs and fewer units for the same amount of money. The utility's profit rose by 2.13% from Ksh24.4 billion in the previous year, while electricity revenue increased by Ksh18.96 billion to Ksh238.24 billion.
Electricity sales grew by 12.05% to 12,777 gigawatt-hours (GWh), with 411,710 new customers added during the year. The price of power, however, is influenced by factors beyond the base tariff, such as monthly pass-through charges, taxes and levies, which vary based on consumption levels. Domestic customers are charged different rates depending on their electricity usage: up to 30 kWh (lifeline, Ksh12.23 per kWh), between 30 and 100 kWh (Ksh16.54 per kWh), and more than 100 kWh (Ksh19.08 per kWh).
These rates do not represent the full amount that determines the number of units a household receives when purchasing electricity, as the Energy and Petroleum Regulatory Authority (EPRA) adjusts several components monthly, including the Fuel Energy Cost Charge, Foreign Exchange Fluctuation Adjustment, and the Water Resource Management Authority levy.
In August 2026, the Fuel Energy Cost Charge was Ksh3.51 per kWh, with forex adjustments at Ksh1.1777 and the water-resource levy at Ksh0.015. Combined, these added about Ksh4.70 per kWh before other charges. The August increase was mainly due to fuel costs, while forex adjustments fell slightly. Despite the higher electricity prices, Kenya Power's profit remained strong due to higher sales, increased customers, lower financing costs, and improved efficiency.
The difference between electricity sales and revenue highlights the distinction between the volume consumed and the amount Kenya Power earns per unit under the current tariff system. The government's withdrawal of a proposed retail tariff review in June prevented further electricity cost escalation, but monthly adjustments to pass-through charges continue to impact final electricity costs.
Consumers must consider how many units Ksh500 or Ksh1,000 buy based on their consumption category and prevailing monthly charges.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
