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The World Bank says Kenyans pay much more for electricity than people in other countries. It blames expensive power deals and poor management in the energy sector.
In its November 2026 Kenya Economic Update, the bank said Kenyan businesses pay nearly 50 per cent more than Ugandan businesses.
They pay Ksh22.60 per kilowatt-hour, compared with Ksh15.20 in Uganda and Ksh10.10 in Vietnam.
Households are also paying more. Kenyan homes pay an average of Ksh28.40 per kilowatt-hour. In Uganda they pay Ksh22.20, in Morocco Ksh15.40, and in Vietnam Ksh10.10.
The bank said Kenya has done well in connecting more people to electricity, but power is still costly.
The bank blamed expensive and unclear power purchase agreements, especially those Kenya Power signs with private power producers. Some of these deals promise payment even when the power is not fully used. Most of the deals were also not put out to competitive bidding.
Only 24 per cent of the 42 agreements Kenya Power signed went through a competitive process. The bank also raised concerns about officials who approved some power projects and later worked for or owned companies in the same business.
Kenya imports some electricity from Uganda and Ethiopia, yet prices remain high. The bank also warned that the country loses more than 23 per cent of the power it generates before it reaches customers, which adds to the cost for businesses.
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