Kenya’s electricity demand has crossed the 2,500 megawatt mark for the first time, signalling growing energy needs from businesses, industries, and households and creating pressure for fresh investment in generation and transmission infrastructure.

The new peak demand of 2,514.28 MW was recorded on June 29, representing an 8.55 per cent increase, or an additional 198 MW, compared with the previous financial year.

The Energy and Petroleum Regulatory Authority (EPRA) said the sharp rise was the highest annual increase in peak demand in five years, highlighting the need for continued expansion of the country’s electricity infrastructure.

In a statement to the media on Tuesday, EPRA Acting Director General Dr. Joseph Oketch said the surge in demand provided important signals for investment and planning in the energy sector.

“The demand that households, businesses, and industries have for electricity helps us plan for generation and transmission infrastructure,” Dr. Oketch said.

Dr. Okech said, according to the 2025/2026 Energy and Petroleum Statistics Report, electricity generation increased by 8.44 per cent during the year, while total installed generation capacity grew by 3.81 per cent to 3,987.20 MW by June.

The increase in demand comes as businesses and households consume more electricity, with domestic consumption recording the strongest growth among customer categories.

Domestic electricity consumption jumped 18.87 per cent to 4,327.07 gigawatt-hours (GWh), accounting for 34.77 per cent of total electricity consumption, up from 32.13 per cent the previous year.

The number of grid-connected customers also rose, with 411,710 new connections taking the cumulative total to 10.43 million.

Large commercial and industrial consumers remained the biggest electricity users, accounting for 47.57 per cent of total consumption, underscoring the importance of reliable and competitively priced power to the economy.

The rising demand is also being accompanied by increased regional power trading.

Electricity imports rose by 379.81 GWh to 1,913.66 GWh during the year, increasing their contribution to Kenya’s energy mix from 10.60 per cent to 12.19 per cent.

Ethiopia supplied 1,577.66 GWh, accounting for 82.45 per cent of total electricity imports, while Uganda supplied 322.06 GWh and Tanzania 6.53 GWh.

Dr. Oketch said Kenya currently draws 200MW through the Ethiopia-Kenya 500kV interconnection, with this expected to increase to 400MW when the next phase of the power purchase agreement comes into effect.

The regulator, he said, approved 10 power purchase agreements during the year and issued 11 generation licences, eight distribution and retail supply licenses, and one export and import licence.

The growing regional power links, he said, would enable Kenya to access competitively priced electricity while improving the reliability and flexibility of the national grid.

At the same time, investment in captive generation continued to grow, with installed captive capacity increasing 12.05 per cent to 676.60MW.

Captive solar photovoltaic capacity rose 24.22 per cent from 300.5 MW to 373.30 MW, as businesses increasingly generate part of their own electricity.

“Every captive installation eases pressure on the national grid while delivering more affordable energy to its owners,” Dr. Oketch said.

The report, he said, shows that 81.16 per cent of Kenya’s installed electricity capacity now comes from renewable sources, while total installed capacity stood at 3,987.20 MW by June 2026.

The statistics also point to another emerging market for investors, electric mobility, whose electricity consumption surged 143.01 per cent during the year from 5.04 GWh to 12.25GWh.

The growth followed increased uptake of the e-mobility tariff. EPRA also removed the 15,000 kWh monthly consumption cap to facilitate greater electricity use by electric mobility customers.

Meanwhile, petroleum demand continued to expand alongside economic activity.

Petroleum product imports increased 11.52 per cent to 10.88 million cubic metres, while domestic consumption rose 8.41 per cent to 6.33 million cubic metres, with transport and construction identified among the sectors driving demand.

LPG consumption also rose 14.62 per cent, pushing per capita consumption from 7.9 kilogrammes to 8.9 kilogrammes.

EPRA said the increase in LPG use was supported by expanded importation, storage and distribution infrastructure, improved product availability and government interventions promoting clean cooking.

Dr. Oketch said the statistics report was an important tool for investors and policymakers because it provides data on the direction of the energy sector and helps guide investment decisions.

Dr. Oketch said EPRA would continue facilitating investment while regulating the sector and protecting consumers as Kenya responds to growing energy demand.

By Chris Mahandara