Ruto Orders Reduction In Electricity Tariff For Special Zones
President William Ruto has set an electricity rate of Ksh10 per kilowatt-hour for investors in Kenya’s Special Economic Zones (SEZs).
The president stated that the action is part of the government’s efforts to reduce manufacturing costs and increase the competitiveness of locally manufactured items in regional and global markets.
Speaking at State House in Nairobi on Tuesday, September 8, during the signing of a deal for a private enterprise to build the Mombasa Special Economic Zone, Ruto stated that inexpensive power will be essential to the country’s industrialization agenda.
“The government will support this industrial ambition with the infrastructure required to make it competitive,” Ruto stated.
“This includes a preferential electricity tariff of Ksh10/kWh for special economic zones investors.”
President William Ruto has directed that the Mombasa Special Economic Zone be completed within six months, promising a preferential electricity tariff of Sh10 per kilowatt-hour for investors to lower production costs.
Speaking in Nairobi, he also pledged to have a one-kilometre… pic.twitter.com/4d1vrlotO5— The Eastleigh Voice (@Eastleighvoice) September 8, 2026
“Our objective is straightforward: to lower the cost of production so that goods made in Kenya can compete successfully in the region and the global market,” he added.
The special rate is intended to make SEZs more appealing to manufacturers by lowering one of the key operational costs associated with energy-intensive enterprises.
The reduction for the select businesses comes as other Kenyans face higher electricity costs for their businesses and households following the increase in electricity tariff by the Energy and Petroleum Regulatory Authority (EPRA).
Currently, Kenyans report paying between Ksh20 and Ksh28/kWh for electricity.
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- Ruto Orders Reduction In Electricity Tariff For Special Zones
The exact cost per unit (token) depends heavily on one’s monthly consumption band and fluctuating monthly regulatory adjustments set by EPRA.
In August alone, the authority added Ksh4.70/kWh for electricity charges.
According to EPRA, the rise came from the Fuel Energy Cost Charge, which was Ksh3.51 per kWh, a Foreign Exchange Fluctuation Adjustment of Ksh1.1777 per kWh, and a Water Resource Management Authority (WRMA) levy of Ksh0.015 per kWh.
The Mombasa Special Economic Zone will be developed in phases, with the first phase covering 40 hectares and is expected to be completed in the next six months.
The project is expected to bring manufacturing, logistics, warehousing, and distribution activities closer to the Port of Mombasa, potentially reducing the cost and time involved in moving goods to regional and international markets.
Ruto Orders Reduction In Electricity Tariff For Special Zones
