Kenya, 7 February 2026 – Kenya’s power sector is beginning to show tangible efficiency gains after electricity transmission and system losses declined to 21.7%, down from 23.74% recorded in 2022.
The reduction marks a significant operational milestone for the Ministry of Energy, signaling progress in addressing long-standing challenges of energy wastage, infrastructure inefficiencies, and revenue leakage across the national grid.
Electricity losses—largely attributed to technical faults, aging infrastructure, illegal connections, and commercial inefficiencies—have historically placed a heavy financial burden on power utilities and consumers alike. Every unit of power lost before reaching end users translates into higher operational costs that are often passed on to households and businesses through elevated tariffs. The latest decline therefore represents more than just a technical statistic; it reflects improved value delivery within the energy supply chain.
Speaking while flagging off electricity projects in Maragua Constituency, Murang’a County, Energy Principal Secretary Alex Wachira said the ministry is firmly on course to further reduce system losses to 16%.
Achieving this target would align Kenya more closely with global best practices and significantly strengthen the financial sustainability of the power sector.
From a business and economic perspective, lower electricity losses have far-reaching implications. Improved efficiency reduces the cost of power distribution, easing pressure on electricity prices and enhancing Kenya’s competitiveness as an investment destination. Energy-intensive sectors such as manufacturing, agro-processing, mining, and data services stand to benefit the most, as power costs remain a critical factor in production decisions and profitability.
The progress also points to gradual success in grid modernisation efforts, including upgrades to transmission lines, substations, and metering systems. Investments in better monitoring, digitization, and enforcement against power theft are increasingly paying off, helping utilities recover more revenue from generated power. This, in turn, improves cash flows and creates fiscal space for reinvestment in infrastructure expansion and maintenance.
Beyond efficiency, the government continues to push for wider electricity access as a driver of inclusive economic growth. According to PS Wachira, more than 37,000 households in Murang’a County have been connected to electricity over the last three years. The ministry is now working to raise this figure to 50,000 households by the end of the year, reinforcing the link between electrification and improved livelihoods.
