Wandayi Unveils Energy Relief Measures as Manufacturers Push Back on Rising Cost
CS Opiyo Wandayi at a previous event. Photo/File
Energy and Petroleum Cabinet Secretary Opiyo Wandayi has announced a raft of measures aimed at lowering the cost of doing business, including reduced electricity charges and a planned cut in diesel prices, following concerns from manufacturers over rising production costs and declining competitiveness.
The interventions emerged after a consultative meeting between the government and the Kenya Association of Manufacturers (KAM), where industry leaders raised concerns over energy affordability, reliability of supply and the impact of operating costs on investment and job creation.
Wandayi said the government recognizes that manufacturers remain under pressure from increasing production expenses, cash flow constraints and stiff competition in regional and international markets, making affordable energy a critical component of economic growth.
“The concerns raised by industry are both valid and important because energy and production are at the heart of Kenya’s economic transformation agenda,” said Wandayi.
“Manufacturing remains a critical driver of jobs, exports and revenue, and we cannot ignore the pressures that rising production costs, cash flow constraints and increasing global competition place on our industries.”
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In a move expected to bring relief to businesses and households, the Cabinet Secretary said the government had suspended a proposed electricity tariff review and implemented a reduction in electricity costs beginning this month.
According to Wandayi, electricity prices have fallen by KSh0.2685 per kilowatt hour, driven by lower foreign exchange adjustment costs, reduced fuel energy charges and increased hydropower generation.
The government is also banking on lower fuel costs to stimulate economic activity.
Wandayi announced that diesel prices are expected to decline further in the next monthly fuel review, a move likely to benefit manufacturers, transporters, farmers and consumers alike.
“Lower diesel prices ultimately translate into lower costs for businesses and greater relief for Kenyan families,” he said.
Diesel remains a critical fuel across key sectors of the economy, powering transport systems, agricultural production and industrial operations. Any reduction in its cost is expected to ease pressure on supply chains and help contain the prices of goods and services.
The Cabinet Secretary said maintaining affordable and reliable energy remains a top government priority despite ongoing volatility in global energy markets.
He noted that fuel supplies have already been secured through the end of July, shielding the country from shortages and disruptions experienced in other markets.
At the same time, Wandayi defended the government’s approach to energy sector reforms, saying continued engagement with manufacturers is intended to create a stable and predictable operating environment that supports investment, protects jobs and promotes exports.
“We are committed to working closely with industry and relevant agencies to create an enabling environment that safeguards jobs, supports positive cash flow, strengthens purchasing power, promotes exports and ensures that Kenya remains an attractive destination for manufacturing and industrial enterprise.”
The latest commitments come as manufacturers continue to call for policies that reduce operational costs and improve competitiveness, with energy remaining one of the biggest expenses facing businesses.
For the government, the challenge now will be translating lower energy costs into tangible relief for industries and consumers while sustaining investment in the country’s long-term energy security.
