Highlights:

• Kenya leads Africa’s 2024 Electricity Regulatory Index alongside Senegal
• Strong reforms and governance praised but families face high electricity bills
• Legal disputes over land charges could push Nairobi power prices up 30%

The African Development Bank (AfDB) announced that Kenya shares first place with Senegal in the 2024 Electricity Regulatory Index (ERI) for Africa. The report, published on June 19, highlights both countries for their solid governance, effective price reforms, and improvements in utility performance.

The ERI measures 43 African countries using three criteria: regulatory governance, policy strength, and real-world results. For Kenya, the AfDB pointed to the successful rollout of its 2023 electricity tariff review and better performance at Kenya Power, the national utility, under the oversight of the Energy and Petroleum Regulatory Authority (EPRA).

Still, for many Kenyan families, those achievements have yet to ease their monthly electricity bills. According to GlobalPetrolPrices, the average residential electricity rate in Kenya stands at 31.25 Kenyan shillings per kilowatt-hour, which equals about $0.24 per kilowatt-hour. In comparison, Uganda’s rate is 22 shillings ($0.17), while in Ethiopia, families pay just 6 shillings ($0.05) per kilowatt-hour.

To make matters worse, households may soon face even higher power costs. A legal fight has broken out between Kenya Power and local authorities over so-called wayleave charges, fees demanded for running power lines across public land.

Since the start of the year, several counties, led by Nairobi, have taken legal steps to demand back payment of these fees. In Nairobi alone, the disputed charges are estimated at 4.8 billion Kenyan shillings, or about $36.9 million.

Kenya Power has rejected the claims, saying those charges must be approved by the national government under Kenya’s energy law. The company warned that if forced to pay, electricity prices in Nairobi could rise by as much as 30%.

These tensions come as many Kenyans face growing pressure on their household budgets. Just last month, Nairobi saw protests over the rising cost of living. While energy prices were not specifically targeted, groups like the Civil Society Reference Group have criticized the steady increase in monthly expenses, including electricity bills.

Despite Kenya’s regulatory success, families are still waiting to feel relief where it matters most, their wallets.