Weekly Report: Increased electricity tariffs strain Kenyan low and middle-income households

Electricity prices in Kenya surged to record highs in January 2024. Domestic customers in Kenya are spread across three categories: Domestic Lifeline, Domestic Ordinary 1, and Domestic Ordinary 2. All three experienced significant increases, with hikes of 17%, 13%, and 12% respectively. 

However, the tariff hike disproportionately impacted low-income earners, often categorised under the Domestic Lifeline tariff. They experienced a 17% increase in electricity tariffs. These individuals typically earn below KES 47,000 ($322.23) monthly, consume 0-30 kWh monthly, and constitute 71.3% of the total customer base. 

This sharp price hike, however, is merely a glimpse into a larger narrative of escalating energy costs in Kenya. Electricity prices have soared by over 67% across all three domestic tariff categories in just one year.

Higher electricity costs are just another addition to a problem Kenyan consumers are grappling with—a steady erosion of their purchasing power. Over the past five years, consumers have