
Kenya Power engineers connecting electricity. Photo | courtesy.
Kenyan households are paying the highest electricity prices in East Africa, according to a new report by the Parliamentary Budget Office (PBO).
The report says that Kenya’s cost per unit of electricity stands at Sh33, significantly higher than its regional counterparts.
In comparison, Uganda charges Sh22 per unit, Tanzania Sh11, and Ethiopia has the lowest rate at just Sh0.80 per unit.
The fluctuating differences in electricity costs raise concerns about the affordability of power in Kenya, particularly for low-income households and businesses.
The high cost of electricity in Kenya has been attributed to a combination of factors, including heavy reliance on independent power producers (IPPs), high operational costs, and taxes.
Energy sector stakeholders have urged the government to implement policy reforms aimed at lowering electricity costs.
ALSO READ: Rubis Identifies Kenya as Its Most Challenging Market
Proposed solutions include renegotiating contracts with IPPs, expanding renewable energy investments, and reducing inefficiencies in power distribution.
The report’s findings come at a time when Kenyans are struggling with the high cost of living, further straining household budgets.