Businesses across Kenya are raising concerns over high electricity bills and frequent power interruptions, saying the two challenges are increasing operating costs, disrupting daily activities and squeezing profit margins. Traders and operators are calling for more affordable and reliable electricity, warning that continued disruptions make it harder to sustain operations and keep prices manageable for customers.
Electricity is a key operating expense for businesses ranging from small retail shops and salons to manufacturers, restaurants, hotels and larger commercial facilities. Higher bills leave enterprises with less money to cover rent, wages, stock and other expenses, while businesses that rely heavily on powered equipment face greater exposure to changes in electricity costs.
The concerns come amid fresh adjustments to electricity billing in October. The Energy and Petroleum Regulatory Authority announced charges covering fuel costs, foreign-exchange fluctuations and water-resource management, adding about KSh4.10 per kilowatt-hour across the applicable adjustments. The actual impact on individual bills depends on consumption and the relevant tariff.
For small businesses operating on tight margins, even relatively modest increases in electricity costs can affect daily profitability. Some traders say they are forced to raise prices to recover expenses, while others risk losing customers if they pass the full increase on to consumers.
Power interruptions add another layer of pressure. Unplanned outages can stop production, interrupt digital payment systems, affect refrigeration and force businesses to spend more on backup power. For enterprises handling perishable goods or working to strict delivery schedules, downtime can also lead to wasted stock, delayed orders and lost revenue.
Businesses that invest in generators or alternative power systems must also meet the cost of equipment, maintenance and fuel. These additional expenses can place smaller operators at a disadvantage compared with firms that have greater resources to absorb disruptions or invest in backup infrastructure.
The concerns reflect a wider challenge for Kenya’s private sector, where the cost and reliability of electricity influence productivity and competitiveness. A World Bank analysis published in October also identified expensive and unreliable power as a constraint on business growth and investment in Kenya.
Business operators are urging energy-sector stakeholders to improve supply reliability and address the factors contributing to high electricity costs. They say predictable power supply and more affordable bills would help businesses plan expenditure, protect margins and maintain stable prices for consumers.
As firms continue to navigate rising operating expenses, the ability to secure reliable electricity at a manageable cost remains central to sustaining investment, supporting employment and strengthening economic activity.
