“True, but Kenya also has the highest electricity access rate in the region. The cost of building and maintaining the most extensive electricity infrastructure cannot be ignored,” Sing’Oei stated. He further acknowledged that while infrastructure plays a role in the high prices, there are inefficiencies in the system that, if addressed, could lower the cost of energy for Kenyan consumers.
Sing’Oei’s comments came in response to recent data from the Parliamentary Budget Office, which revealed that Kenyan households pay Ksh33 per unit of electricity, significantly higher than their regional counterparts: Uganda charges Ksh22, Tanzania Ksh11, and Ethiopia a mere Ksh0.80 per unit.
The Power Generation Mix and Its Impact on Costs
In February 2024, Kenya Power and Lighting Company (KPLC) Managing Director, Joseph Siror, also weighed in on the factors contributing to Kenya’s electricity pricing. He explained that the pricing of electricity in Kenya is made up of several components that ultimately influence the cost passed on to consumers.
Siror outlined Kenya’s power generation mix, noting that 40% of the country’s electricity is generated from geothermal sources, 24% from hydro, 11% from imported power from Ethiopia, 17% from wind, 5% from thermal, and 3% from solar energy. He emphasized that improved hydrology has reduced Kenya’s reliance on expensive thermal power, which has helped in providing more competitively priced electricity to consumers.
“There are many components that go into the final cost of electricity. In Kenya, the power generation mix is predominantly green, resulting in competitively priced power compared to other regions in the continent,” Siror explained. “With improved hydrology, we are now dispatching minimal thermal power, resulting in a more affordable and sustainable energy supply.”
