Energy and Petroleum Regulatory Authority is urging Kenya’s industries and manufacturers to adopt energy efficiency measures as industrial electricity consumption continues to rise, with the sector accounting for nearly half of the country’s total power demand.
Kenya’s energy regulator has urged manufacturers and large industrial consumers to adopt energy efficiency measures as a key strategy for reducing operational costs and improving competitiveness.
The Energy and Petroleum Regulatory Authority (EPRA) says industries remain the largest consumers of electricity in the country, making them a critical target for policies aimed at improving energy management and supporting sustainable economic growth.
According to the latest energy statistics released by the regulator, the industrial sector accounted for 49.25 percent of Kenya’s total electricity consumption between June and December 2025.
During the six-month period, industrial power use rose to 2,924.48 gigawatt hours (GWh), representing a 4.18 percent increase from 2,807.10 GWh recorded in the same period in 2024.
Rising Energy Demand From Industry
The growth in industrial electricity consumption reflects the gradual expansion of manufacturing and processing activities across Kenya, which are central to the government’s economic development strategy.
However, regulators say rising energy demand also highlights the need for improved efficiency to reduce production costs and avoid pressure on the national power system.
EPRA notes that companies can significantly lower their energy bills by adopting existing energy efficiency frameworks while maintaining or even increasing production output.
Through more efficient energy management, businesses can reduce the amount of power required for each unit of production, helping them remain competitive in a market where electricity costs remain a major concern for manufacturers.
New Energy Management Regulations
To address these challenges, the government has introduced new regulations aimed at improving energy use across large facilities.
The rules, known as the Energy (Energy Management) Regulations, 2025, establish a structured framework for managing energy consumption in commercial, industrial and institutional facilities that use more than 180,000 kilowatt hours (kWh) of electrical and thermal energy annually.
Under the regulations, large energy consumers are required to adopt formal energy management systems and implement measures designed to improve efficiency.
EPRA Director General Daniel Kiptoo Bargoria said the regulations introduce a number of mandatory compliance requirements aimed at strengthening energy governance in large organisations.
“Among other things, the regulations require that facilities conduct comprehensive energy audits once every four years, implement the recommendations and realise at least 50 percent of the projected savings,” Bargoria said.
He added that companies must also appoint licensed energy managers and establish internal energy management committees responsible for overseeing implementation of energy efficiency measures.
According to EPRA, these requirements are designed to promote stronger corporate governance practices in energy management while supporting broader environmental, social and governance (ESG) objectives.
Energy Efficiency As A “Virtual Power Plant”
Government officials say improved efficiency across large energy users could also generate broader benefits for the national electricity system.
Speaking at a meeting attended by chief executives and industry leaders, Energy Principal Secretary Alex Wachira said energy efficiency initiatives could effectively free up power within the existing grid without the need for new generation projects.
“By investing in energy efficiency measures, industries will free up power, thereby creating what is referred to as ‘virtual power plants’,” Wachira said.
He explained that electricity saved through efficiency improvements could be redistributed to other factories, homes and commercial centres, helping meet rising demand without significant additional infrastructure investments.
This approach is increasingly being adopted globally as governments seek to manage energy demand and reduce the need for expensive new power generation projects.
Focus On Efficient Appliances
In addition to the energy management regulations, EPRA has also introduced new rules aimed at improving the efficiency of electrical appliances used in homes and businesses.
The Energy (Appliances’ Energy Performance and Labelling) Regulations require that appliances manufactured locally or imported into Kenya meet minimum energy performance standards.
These standards apply to a range of commonly used equipment, including refrigerators, air conditioners, lighting products and electric motors.
By enforcing minimum efficiency thresholds and clear labelling requirements, regulators hope to ensure that consumers and businesses can identify and purchase appliances that consume less electricity.
Implications For Industry And Energy Policy
Energy efficiency has become an increasingly important issue for Kenya’s industrial sector, particularly as manufacturers seek ways to reduce operating costs and remain competitive in regional and global markets.
Electricity costs are often cited by industry players as one of the key barriers to expanding manufacturing activity in the country.
By encouraging efficiency improvements, policymakers aim to reduce production costs for businesses while improving the reliability and sustainability of the national power system.
The push for improved energy management also aligns with Kenya’s broader climate commitments, which include reducing greenhouse gas emissions and increasing the share of clean and renewable energy in the country’s energy mix.
For regulators and policymakers, improving efficiency among the largest energy users is viewed as one of the fastest and most cost-effective ways to balance rising electricity demand with long-term sustainability goals.
