MPs Want Higher Electricity Prices To Help Recover Rural Electrification Costs

By Robai Ludenyi

Members of Parliament are urging the national energy regulator to consider raising electricity prices so that Kenya Power can recover the money it has spent on taking electricity to rural communities. Over the years, the company has extended power lines and connected homes in remote areas, but the cost of these projects has grown faster than the government reimbursements that were expected to support the work.

According to information shared with Parliament, Kenya Power is currently struggling with a large financial gap created by these unpaid rural electrification expenses. The total amount that is yet to be refunded by the Treasury has reached almost thirty billion shillings. This shortfall has placed pressure on the company’s financial stability and is affecting its ability to invest in new improvements or maintain the existing network efficiently.

Members of Parliament argue that electricity consumers should begin contributing to these costs through slight increases in the base power tariff starting in July twenty twenty six. Their view is that the rural electrification program benefits the entire country by promoting economic development, opening up new business opportunities, and improving the lives of families in remote areas. Therefore, they believe that allowing Kenya Power to include these costs in the electricity tariff will help keep the company stable and capable of supporting the nation’s growing energy needs.

However, the energy regulator has expressed concerns. It believes that passing these costs to all electricity users may not be fair to customers who already feel the weight of high monthly bills. Many families and small businesses are still struggling with the rising cost of living, and any increase in power prices could deepen their financial challenges. The regulator is therefore urging Parliament and the Treasury to explore other possible solutions before a final decision is reached.

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The author is Robai Ludenyi. Journalist and Media Innovator