By Billy Mijungu
It is welcome news that the Energy and Petroleum Regulatory Authority (EPRA) has moved to end the monopoly of KPLC and others. The World Bank doesn’t like it.
Ironically, the very countries represented by the World Bank practise free market competition in their energy sectors. Competition in those economies has produced efficiency, innovation and excellence. Yet it is not good for Kenya.
The World Bank appears uncomfortable with alternatives to generate affordable electricity for the people. In places like Kenya, where development opportunities remain largely untapped, such positions can easily be interpreted as attempts to discourage local enterprise and maintain dependency instead of empowering communities.
Kenya has now cleared the path for independent power producers to directly sell electricity to large consumers, including industries, factories and commercial enterprises. Many industries left Kenya because of the high cost of electricity. Lower power costs will attract investment, create jobs and increase tax revenues that support development.
The State has published the Energy (Electricity Market, Bulk Supply and Access) Regulations, 2026, allowing producers without existing Power Purchase Agreements (PPAs) with Kenya Power to directly compete for large consumers. For the first time, businesses will be able to choose suppliers based on affordability, reliability and efficiency rather than being subjected to a single system without alternatives.
Power producers will still use the transmission infrastructure of KETRACO and Kenya Power through wheeling charges, meaning the existing utilities will continue earning revenue. However, EPRA must also allow alternative transmission mechanisms beyond State-owned systems if genuine market competition is to succeed.
The World Bank argues that competition could trigger higher electricity prices. That argument is difficult to understand because competition, in properly regulated markets, generally lowers prices, improves service delivery and forces efficiency.
For years, large consumers have paid disproportionately higher tariffs, effectively subsidising the broader electricity system while making Kenyan industries less competitive regionally and internationally. That model has hindered industrial growth and reduced Kenya’s manufacturing competitiveness.
Kenya Power recorded Ksh 219.26 billion in electricity revenue in 2025, figures expected to change once competition takes effect.
Kenya ignoring advice that would preserve inefficiency and high electricity costs deserves commendation. Affordable electricity should never be viewed as a threat. It is the foundation of industrialisation, employment creation, investment growth and economic freedom.
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