(NAIROBI, KENYA) – Monthly electricity bills for homes and businesses newly connected to Kenya’s national grid have fallen below KES 1,000 ($7.72), reflecting low consumption patterns among households recently linked to the network.
Official data shows that customers connected by Kenya Power in the year ending June 2026 spent an average of KES 818.68 ($6.32) per month, down from KES 1,061.76 ($8.20) the previous year.
Most households connected under the subsidised Last Mile Connectivity Project (LMCP) lack major appliances such as electric cookers and refrigerators, which drive electricity usage. Beneficiaries largely use power for lighting, limiting returns on the utility’s investment in grid expansion.
Small businesses connected through the LMCP also show low consumption, with minimal demand for services such as barber shops and salons keeping energy use at modest levels.
Kenya Power’s earnings from new connections declined to KES 4.05 billion ($31.26 million) from KES 5.12 billion ($39.52 million) a year earlier.
The utility connected 411,710 new customers during the financial year, bringing its total customer base to approximately 10.4 million . However, electricity consumption by this new cohort stood at 161.7 gigawatt hours (GWh), down from 202.98 GWh a year earlier . Each customer added during the latest financial year generated about KES 9,840 ($75.95) in electricity sales revenue, equivalent to roughly KES 820 ($6.33) per month, compared with approximately KES 12,740 ($98.34) per customer, or about KES 1,062 ($8.20) per month, for the previous year’s cohort .
The LMCP, launched in 2015, was designed to expand electricity access at a subsidised connection rate of KES 15,000 ($115.78), reduced from an average of KES 45,000 ($347.34) . The programme targets households within 600 metres of existing transformers, with the government covering remaining costs.
Many families and businesses have also adopted backup power systems, mainly solar, reducing reliance on the national grid for daily operations. The pursuit of reliable supply and lower monthly bills has driven this shift among commercial users and wealthier households.
The overall new connections include those in the commercial and industrial segments alongside LMCP beneficiaries. The programme has been described as more of a social good than a commercial venture for Kenya Power.
Despite the low consumption among new customers, the utility has aggressively expanded connections in recent years to boost revenues and counter the impact of consumers turning to solar power.
Increased connections and electricity sales have been critical in restoring Kenya Power’s profitability. The utility posted a net profit of KES 24.99 billion ($192.89 million) in the year to June 2026, up 2.1% from KES 24.47 billion ($188.88 million) a year earlier . Total electricity sales rose 12% to 12,777 GWh from 11,403 GWh, with revenue reaching KES 238.24 billion ($1.84 billion) .
The company’s finance costs fell 34.68% to KES 3.08 billion ($23.77 million), while working capital improved from a negative KES 19.21 billion (-$148.28 million) to a positive KES 1.90 billion ($14.67 million) .