Kenyan commercial and industrial users have collectively cut electricity expenses by KSh8 billion over the past five years by moving production to off-peak periods.
Data for the year ending June 2026 show that firms reduced their bills by KSh1.87 billion through the Time of Use (ToU) preferential tariff, adding to the KSh6.26 billion saved between July 2021 and June 2025.
The ToU scheme offers a 50 per cent discount on energy charges for qualifying commercial, industrial and e-mobility customers during designated off-peak hours.
Off-peak hours run from 10 pm to 6 am on weekdays, from 2 pm on Saturdays until 6 am on Sunday, and cover the entire day on Sundays and public holidays.
The number of businesses enrolled rose to 2,614 in the year to June 2026, up from 2,339 the previous year and 1,2482 in the year to June 2022.
The World Bank estimates the average Kenyan kilowatt-hour at $0.23 (KSh29.8), considerably above rates in neighbouring markets. It said, “Kenya’s electricity prices are among the highest in the region, materially increasing production costs for formal, quality-compliant producers,” and added, “Industrial tariffs average US$0.18–US$0.23 per kilowatt-hour, compared with about US$0.03–US$0.05 per kilowatt-hour in regional comparators such as the Arab Republic of Egypt, Ethiopia, and Morocco.”
The ToU programme was launched in December 2017 to stimulate grid usage during low-demand periods and was expanded in April 2023 to include small commercial and electric-mobility customers.
By lowering off-peak rates, the scheme aims to smooth the demand curve, improve grid stability and make better use of existing generation capacity.
Base consumption charges have fallen each year since 2023, yet commercial and industrial users still pay between KSh12.28 and KSh18 per kilowatt-hour, compared with a range of KSh12.28 to KSh20.18 in 2023.
A power bill also comprises a fuel surcharge, a 16 per cent value-added tax, a foreign-exchange adjustment, an energy regulatory levy and additional levies for rural electrification, water resources management and the energy sector.
