Kenya’s industrial electricity costs remain significantly higher than those faced by major industrial users in South Africa and Morocco, raising concerns about the country’s competitiveness as businesses contend with high operating costs. Recent comparisons put Kenya’s industrial electricity tariffs at about US$0.18–0.23 per kWh, depending on consumption and voltage levels. Additional fuel, foreign-exchange and water charges introduced in August have added further pressure to electricity bills. South Africa’s standard large-industrial tariffs are considerably lower, at around R1.96/kWh, equivalent to roughly US$0.11/kWh. Energy-intensive industries can access even lower preferential rates. In early 2026, a temporary tariff of 87.74 cents/kWh was approved for selected ferrochrome producers, while a longer-term framework around 62 cents/kWh has also been proposed. These rates are intended to protect energy-intensive industries and support their continued operation.
Morocco also offers substantially cheaper electricity for large industrial users, with industrial tariffs generally reported in the US$0.05–0.07/kWh range. The country has also introduced regulated net-metering export tariffs for high- and medium-voltage self-generators, highlighting the growing role of industrial solar in reducing electricity costs. The lower power prices give Moroccan manufacturers an important cost advantage over businesses operating in Kenya.
The disparity is particularly significant because Kenya has one of Africa’s cleaner electricity systems, with geothermal, hydro, wind and solar providing a large share of generation. Yet relatively clean generation has not translated into equally competitive electricity bills. High financing costs, transmission and distribution losses, foreign-exchange movements, fuel charges, taxes and the structure of power-purchase agreements all contribute to the final price paid by consumers.
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The comparison underscores a broader challenge for Kenya’s energy transition: adding more renewable capacity will not automatically make electricity cheaper. The country will also need to reduce grid losses, improve procurement, lower the cost of capital, strengthen transmission and distribution infrastructure and reform tariff structures. Without those changes, Kenya risks building an increasingly clean power system while its manufacturers continue paying substantially more for electricity than competitors in countries such as South Africa and Morocco.
