Rising electricity, fuel demand puts strain on energy sector - EPRA report

The latest data from the Energy and Petroleum Regulatory Authority (EPRA) shows increased electricity and petroleum use, alongside a rapid uptake of electric mobility. But even as demand grows, concerns remain over system inefficiencies and power reliability.

New data from EPRA shows electricity demand rose by 8 per cent in the six months to December 2025, a sign of increased economic activity and higher consumption across homes and industry.

Petroleum demand also grew by about 8 per cent, while consumption of LPG climbed by 14 per cent, driven by the National LPG Growth Strategy.

Electricity generation kept pace with demand, rising to 7,807 gigawatt hours, as more consumers were connected to the grid and usage intensified.

Geothermal remains the dominant source of power, accounting for the largest share of electricity generation, followed by hydro, wind and solar.

Nearly 79 per cent of electricity supplied came from renewable sources. Peak demand hit a record 2,439 megawatts in December, indicating mounting pressure on the country’s energy infrastructure. 

As for cost, the report shows retail electricity tariffs remained largely stable through the period. Ordinary domestic consumers paid between about Ksh.25 and Ksh.28 per unit, while industrial users paid slightly lower rates depending on voltage

But one of the most notable shifts is happening in transport. Electricity consumption linked to electric mobility, including electric vehicles and motorcycles, surged by over 150 per cent, pointing to a rapid early-stage adoption of e-mobility solutions. 

Even so, the electricity subsector continues to face deep-rooted challenges. System losses remained high at 22 per cent, well above regulatory targets.

This reflects inefficiencies in transmission and distribution. Power reliability also remains a concern, with consumers experiencing more than 8 hours of outages on average each month.

Meanwhile, regional energy trade is gaining traction, with electricity imports from Ethiopia and Uganda rising by nearly 25 per cent.