The government has pledged to further reduce energy costs and strengthen collaboration with manufacturers as it seeks to boost industrial competitiveness and support economic growth amid global market uncertainties.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the government remains committed to providing affordable, reliable and sustainable energy to industries following consultations with leaders of the manufacturing sector under the Kenya Association of Manufacturers (KAM).
Speaking after a meeting with industry stakeholders on Wednesday, Wandayi said discussions centred on three key areas: adequacy of energy supply, reliability and quality of electricity, and energy affordability.
“The cost of doing business has a direct impact on competitiveness, investment and livelihoods,” said Wandayi. “We remain committed to maintaining a stable and predictable environment that supports positive cash flow for industry players, safeguards jobs and preserves confidence in the market.”
The CS said the government is pursuing collaborative solutions with the private sector to sustain economic activity, protect jobs and create conditions that enable businesses to expand.
Among the measures highlighted was the Time-of-Use tariff programme, which encourages manufacturers to shift operations to off-peak periods by offering lower electricity charges during those hours.
Wandayi also sought to reassure businesses over energy security, noting that Kenya has secured sufficient petroleum supplies through the end of July despite volatility in global energy markets.
“Fuel deliveries have already been secured through the end of July, ensuring uninterrupted supply and shielding Kenyans from shortages and disruptions experienced elsewhere,” he said.
The government further pointed to recent reductions in electricity costs as part of efforts to ease pressure on businesses and households.
According to the ministry, electricity costs fell by KSh0.2685 per kilowatt-hour from June 2026 following a decline in the foreign exchange adjustment component, lower fuel energy costs and increased hydropower generation.
The government also confirmed that it had suspended a proposed electricity tariff review to cushion consumers and businesses from higher power bills.
In another move aimed at lowering production and transport costs, Wandayi said diesel prices would be reduced further during the next monthly fuel price review.
The CS argued that cheaper diesel would have a wider impact on the economy because the fuel powers key sectors including transport, agriculture and manufacturing.
“Lower diesel prices ultimately translate into lower costs for businesses and greater relief for Kenyan families,” he said.
The pledge comes as manufacturers continue to raise concerns over rising production costs, cash flow constraints and increasing competition from imports, issues that industry players say are affecting profitability and investment decisions.
Wandayi acknowledged the concerns, describing manufacturing as a critical pillar of Kenya’s economic transformation agenda due to its role in creating jobs, generating export earnings and supporting government revenue.
He said the government would work closely with industry and relevant agencies to improve policy alignment, strengthen purchasing power, promote exports and maintain Kenya’s attractiveness as a manufacturing destination.
Looking ahead, the ministry said it would continue investing in power generation, transmission infrastructure and renewable energy projects to enhance long-term energy security and support industrial growth.
The government’s objective, Wandayi said, is to build a stable, affordable and sustainable energy system that powers businesses, creates jobs and improves livelihoods while supporting Kenya’s broader economic ambitions.
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