DNK International By Our Correspondent,Nairobi.
Presidential aspirant Prof. Fred Ogola has renewed calls for urgent reforms in Kenya’s energy sector, warning that high electricity prices are deepening the cost of living crisis and undermining economic growth.
In a statement issued in Nairobi, the Liberal Democratic Party (LDP) candidate said consumers are paying about Sh28 per unit of electricity purchased from Kenya Power and Lighting Company despite the base energy charge being approximately Sh18.57 per unit. He said the difference is driven by multiple taxes, levies, foreign exchange adjustments, and inefficiencies within the power sector.
Ogola argued that electricity costs now affect nearly every aspect of daily life, noting that higher power prices lead to increased food prices, rising rent, higher water bills, and mounting pressure on small businesses. “Electricity is no longer just a utility bill. It has become the cost of living,” he said.
The aspirant identified several structural issues contributing to the high cost of power, including fuel cost charges, regulatory levies, VAT, and foreign exchange losses that together account for nearly a third of electricity bills. He also criticised dollar-denominated power purchase agreements, saying depreciation of the shilling automatically pushes electricity prices higher.
In addition, Ogola cited inefficiencies in electricity transmission, claiming that more than 20 per cent of generated power is lost through system leakages, with consumers ultimately bearing the cost. He further faulted independent power producer contracts that require capacity payments even when electricity is not consumed.
Ogola accused the administration of President William Ruto of failing to implement long-promised reforms in the energy sector. He said a presidential taskforce had previously indicated that electricity prices could be reduced by over 30 per cent through contract renegotiation and structural changes, but implementation has stalled.
“Reports are written, committees are formed, and promises are made, but execution does not follow,” Ogola said, adding that households continue to shoulder the burden as transparency remains limited.
Under what he termed the “LDP prototype,” Ogola said his administration would seek to cut electricity costs by up to 45 per cent. His proposals include renegotiating independent power producer contracts, removing or rationalising excess levies, expanding geothermal and hydroelectric power generation, reducing system losses to below 10 per cent, and introducing discounted tariffs for manufacturers.
Ogola, who is the presidential aspirant for the Liberal Democratic Party, said affordable electricity is essential for industrialisation, job creation, and economic competitiveness.
“No country has industrialised with expensive electricity,” he said, adding that lowering power costs would reduce household expenses, strengthen local industries, and create employment opportunities for millions of young Kenyans.
[DNK-International@February 26,2026]
