Factories and large institutions could soon be forced to rethink how they use electricity after the government moved to tighten energy management rules for the country’s biggest power consumers.
The Energy and Petroleum Regulatory Authority (EPRA) is now urging industries to adopt energy efficiency measures that would reduce operational costs while maintaining or even increasing production levels.
The call comes at a time when the industrial sector remains the largest consumer of electricity in the country.
Data from the latest Energy and Petroleum Statistics report covering June to December 2025 shows that industries consumed 2,924.48 gigawatt hours of electricity during the period.
This represents a 4.18 per cent increase compared to the 2,807.10 gigawatt hours recorded during the same period in 2024. The sector alone accounted for nearly half of Kenya’s total electricity consumption at 49.25 per cent.
With power demand rising across the country, energy officials say improving efficiency in factories could help ease pressure on the national grid without requiring massive investment in new power plants.
Managing electricity demand
Speaking during a meeting with leaders from the manufacturing and industrial sectors, Principal Secretary in the State Department of Energy Alex Wachira said industries have a major role to play in helping the country manage electricity demand.
“By so doing, industries will free up power, thereby creating what is referred to as virtual power plants,” Wachira said.
He explained that when industries reduce unnecessary electricity consumption, the saved power can be redirected to other factories, homes and businesses.
“That power will be distributed to more factories, homes and commercial centres without having to invest in new power plants,” he added.
The push is anchored in the newly introduced Energy (Energy Management) Regulations, 2025, which place stricter requirements on commercial, industrial and institutional facilities that consume more than 180,000 kilowatt hours of electrical and thermal energy annually.
Under the regulations, large energy users will be required to conduct comprehensive energy audits at least once every four years. They must also implement the recommended improvements and achieve at least half of the projected energy savings.
EPRA Director General Daniel Kiptoo Bargoria said the regulations are meant to strengthen energy governance in large organisations while also improving their competitiveness.
“Among other things, the regulations require that facilities conduct comprehensive energy audits once every four years, implement the recommendations and realise at least 50 per cent of the projected savings, appoint a licensed energy manager and establish an internal energy management committee,” Bargoria said.
He noted that stronger energy management systems will help companies cut production costs, improve resilience and strengthen their environmental, social and governance performance.
Beyond factories, EPRA is also tightening rules on appliances entering the Kenyan market.
The authority has introduced the Energy (Appliances’ Energy Performance and Labelling) Regulations, which require electrical appliances manufactured locally or imported into the country to meet Kenya’s Minimum Energy Performance Standards.
The standards target common household and industrial appliances, including refrigerators, air conditioners, lighting equipment and electric motors.
As electricity demand continues to grow due to industrial expansion, new businesses and increased household connections, authorities say efficient energy use will be critical in ensuring the country’s power supply remains stable and affordable.
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