The Energy and Petroleum Regulatory Authority (EPRA) has urged industries and manufacturers to adopt energy efficiency measures as a practical way to reduce operational costs while improving productivity.
According to the regulator, large commercial and industrial energy users can maintain or even increase production levels while reducing the amount of energy consumed per unit of output by implementing existing energy efficiency frameworks.
The call comes as energy demand in the industrial sector continues to grow.
Industrial Sector Consumes Nearly Half of Kenya’s Electricity
Data from EPRA’s energy statistics report covering June to December 2025 shows that industrial consumers used 2,924.48 gigawatt-hours (GWh) of electricity.
This represents a 4.18 percent increase from 2,807.10 GWh recorded during the same period in 2024.
The industrial sector accounted for 49.25 percent of Kenya’s total electricity consumption, making it the single largest consumer of power in the country.
Regulators say improving energy efficiency in this sector could therefore generate significant savings both for businesses and the national power system.
New Energy Management Regulations
To address rising energy demand and encourage efficiency, EPRA has introduced the Energy (Energy Management) Regulations, 2025.
The regulations apply to commercial, industrial and institutional facilities that consume more than 180,000 kilowatt-hours (kWh) of electrical or thermal energy annually.
The framework aims to promote responsible energy consumption while helping organisations manage rising power costs.
Among the requirements outlined in the regulations are:
- Conducting comprehensive energy audits every four years
- Implementing audit recommendations
- Achieving at least 50 percent of projected energy savings
- Appointing a licensed energy manager
- Establishing an internal energy management committee
According to EPRA, these measures are designed to strengthen corporate governance while enhancing companies’ environmental, social and governance (ESG) performance.
Energy Efficiency Can Create “Virtual Power Plants”
Speaking at a meeting attended by industry and manufacturing leaders, Alex Wachira, Principal Secretary in the State Department for Energy, said energy efficiency could effectively unlock additional power capacity without constructing new power plants.
“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 the resulting energy savings could be redirected to supply more factories, homes and commercial centres without requiring major new generation investments.
Standards for Energy-Efficient Appliances
In addition to the energy management framework, EPRA has introduced the Energy (Appliances’ Energy Performance and Labelling) Regulations to improve the efficiency of electrical appliances used across the country.
These regulations require appliances manufactured locally or imported into Kenya to comply with Minimum Energy Performance Standards (MEPS).
The standards apply to common energy-consuming devices including:
- Refrigerators
- Air conditioners
- Lighting appliances
- Electric motors
The labelling requirements are intended to help consumers identify more energy-efficient products while encouraging manufacturers to produce appliances that meet national efficiency standards.
Supporting Sustainable Energy Use
Officials say improving energy efficiency is a key component of Kenya’s broader strategy to manage rising electricity demand while supporting economic growth.
By reducing wasteful energy use, regulators hope to ease pressure on power generation infrastructure while helping businesses lower operating costs.
According to Daniel Kiptoo Bargoria, Director General of Energy and Petroleum Regulatory Authority, the regulations also strengthen accountability within organisations.
“These measures establish strong corporate governance practices that strengthen competitiveness, resilience and ESG performance,” Bargoria said.
The regulator expects the new rules to accelerate adoption of energy management practices across major industries, supporting both economic efficiency and sustainable energy use.
