Kenya Power’s revenues took the biggest hit from industries with sales from this consumer class dropping by 9.5 per cent in the year ended June 2025, as reduced electricity tariffs across the board took a toll on the firm.
Company disclosures show that revenues from industries fell to Sh106.49 billion in the review period from Sh117.69 billion a year earlier while those from homes dropped 1.3 per cent to Sh68.19 billion.
Among categories of power users, only street lighting and electric mobility recorded growth in revenues.
Kenya Power’s total sales dropped five per cent to Sh219.28 billion in the review period when its net profit dipped 18.66 per cent to Sh24.47 billion.
The revenue slump came in a year when base electricity tariffs fell by up to Sh1.40 per kilowatt-hour (kWh) in the third year of cuts that started in July 2023.
Reduced price per unit of electricity negated the growth in number of units that Kenya Power sold, with sales rising to 11,403 Gigawatt-hours (GWh) in the year to June 2025 from 10,516 GWh a year earlier.
The fall in revenues is the first for Kenya Power in at least a decade highlighting the impact of the lower tariffs that were meant to ease pressure on consumers.
“The fall in revenues has been largely due to the falling base tariff. If you look at the tariff control period since 2023, year on year, it has reduced by almost Sh0.70,” Joseph Siror, managing director of Kenya Power told this publication in an interview in October this year.
“So if you compare now and 2023, it has gone down by almost Sh2 per unit.”
Kenya Power has been recording an average annual growth of 13 per cent since 2017 before the trend changed in the year ended June with a drop of five per cent.
Revenues from small business fell marginally to Sh41.72 billion in the year ended June 2025 from Sh41.9 billion a year ago.
Base tariffs (the cost per kWh) for all consumer categories have declined over the three-year period from July 2023 following the new tariffs gazetted by the Energy and Petroleum Regulatory Authority (Epra).
A kWh for industries (those using more than 15,000 units a month) is going for Sh13.44 in the year ending June 2026 compared to Sh14.50 two years ago. Domestic consumers (using more than 100 units a month) are now paying Sh18.57 per kWh from Sh20.58 in the same period.
Industries are the biggest consumers of electricity from the national grid, underscoring why Kenya Power took the biggest hit on revenues from this class in the review period.
They consume at least 53 per cent of all electricity, sold by Kenya Power, followed by homes 34 percent and small businesses which use 17 percent of the electricity.
Electric vehicles and street lighting are the only two consumer classes that posted a growth in revenues in the review period. The base tariff for e-mobility is unchanged at Sh16 per kWh over the three years to June 2026.
But the two classes consume less than two percent of the electricity, rendering their revenue growth largely inconsequential to Kenya Power.
The company is expected to submit a tariff proposal to Epra early next year. The new tariffs will cover the three-year cycle from July 2026.
