Kenya Power Reveals How Row With Nairobi County Will Lead To Increase In Electricity Prices

Kenya Power Managing Director Joseph Siror has warned that electricity costs may rise if county governments start charging the company for wayleaves, a move which could reverse the gains made following a reduction in electricity prices.

Speaking at a meeting with the Kenya Editors Guild on Tuesday, March 4, Siror stated that if the charges are imposed, Kenya Power would have to pay Ksh63.8 billion to the counties.

As a result, he explained, the additional costs would be passed on to consumers. According to him, electricity prices could increase by 30 percent if these charges are implemented.

Notably, the Nairobi County Government has already asked Kenya Power to pay for wayleaves amid a recent dispute.

"Kenya Power has over 319,000 kilometres of power lines across all 47 counties. The introduction of wayleaves on power lines will impact retail tariffs. Under the proposal to charge wayleaves on electricity infrastructure at a cost of Ksh200 per meter, this translates into Ksh63.8 billion per year.

"This is approximately 30% of the energy sector's revenue requirements, which must be recovered from the monthly electricity bills. The overall impact is that electricity will become unaffordable to a majority of Kenyans," he explained.

However, he insisted that imposing charges on wayleaves was unlawful, as it went against the law. He referenced Section 223 of the Energy Act 2019, which bars public entities from imposing levies on public energy infrastructure without regulatory approval.

The introduction of wayleave charges stems from a public dispute between Kenya Power and the Nairobi County Government over the past two weeks, which led to the county disconnecting fibre cables attached to power lines.

The conflict began when Kenya Power, listed under the KPLC ticker on the Nairobi Stock Exchange, cut off electricity to county government offices due to unpaid debts.

In response, Governor Johnson Sakaja’s administration retaliated by dumping garbage, clamping Kenya Power’s vehicles, and demanding payment for wayleave charges. In a press statement, Sakaja claimed that the utility company owed the county Ksh4.9 billion in wayleave fees.

Meanwhile, Siror stated that electricity costs had decreased in recent months due to the stabilization of the shilling, leading to lower pass-through charges, including forex and fuel costs. He specified that the base tariff declined from Ksh19.04 per unit in 2023, to Ksh17.94 in 2024.

“This has added to the gains from the decline in the base energy cost following a review of the electricity tariff in April 2023 which put in place a three-year tariff that provides for a lower cost per unit, starting in July of each of the three years. So far, the base tariff has declined from KSh 19.04 per unit in 2023 to the current Ksh17.94,” he said.

In mid-February, Kenya Power announced that electricity consumption hit a new record high with a peak demand of 2,316 megawatts (MW) recorded on Wednesday, February 12, 2025. This demand was 12 MW higher than the previous peak of 2,304 MW recorded on January 15, 2025.