The government has reaffirmed its commitment to ensuring affordable, reliable, and sustainable energy for industries as part of efforts to support economic growth, enhance competitiveness, and protect jobs amid uncertainties in global energy markets.
Speaking after a consultative meeting with leaders and representatives of the manufacturing sector under the Kenya Association of Manufacturers (KAM), Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the government remained focused on maintaining energy stability while creating a conducive environment for businesses to thrive.
Wandayi said the discussions centered on three key priorities, including adequacy of energy supply, reliability and quality of electricity, and affordability of energy, noting that continued engagement between government and industry stakeholders was essential in addressing challenges facing the sector.
“The government remains firmly committed to ensuring affordable, reliable, and sustainable energy for our industries and, in effect, their customers,” said Wandayi.
He emphasized that consultation and collaboration would remain central to the government’s approach, adding that solutions to challenges facing the energy sector could best be achieved through structured partnerships between public and private sector players.
“Our deliberations today with industry stakeholders focused on three key priorities: adequacy of energy supply, reliability and quality of electricity, and affordability of energy. We believe that the best solutions are achieved through partnership,” he stated.
The Cabinet Secretary noted that the government was keen on ensuring the long-term sustainability of operations across the energy sector, acknowledging that the cost of doing business directly affects investment, competitiveness, and livelihoods.
According to Wandayi, maintaining a stable and predictable business environment would support positive cash flow for industries, safeguard jobs, and preserve investor confidence.
“Through collaborative problem-solving with stakeholders, our focus is to sustain economic activity, protect jobs, and create conditions that allow businesses to grow and continue contributing to Kenya’s development,” he said.
He highlighted the time-of-use tariff programme as one of the initiatives aimed at lowering energy costs for manufacturers by encouraging industries to shift some of their operations to off-peak hours when electricity charges are significantly lower.
Wandayi further assured manufacturers and consumers of an adequate fuel supply despite ongoing volatility in international energy markets.
“Kenya has maintained a stable position, with decisive steps to ensure an adequate and uninterrupted supply of petroleum products. Fuel deliveries have already been secured through the end of July, ensuring uninterrupted supply and shielding Kenyans from the shortages and disruptions experienced elsewhere,” he said.
The Cabinet secretary announced measures taken by the government to cushion both businesses and households from rising energy costs.
He revealed that the proposed electricity tariff review had been suspended while electricity prices had reduced by Sh0.2685 per kilowatt-hour effective June 2026.
According to Wandayi, the reduction was occasioned by a significant drop in the foreign exchange adjustment component, lower Fuel Energy Cost (FEC) charges, and increased hydropower generation.
“This reflects our commitment to ensuring that gains within the sector are shared directly with Kenyans,” he said.
In addition, the CS announced that the government would implement further reductions in diesel prices during the next monthly fuel review in line with commitments made by President William Ruto to the public transport sector and other industry players.
He observed that diesel remains a critical input in transportation, agriculture, manufacturing, and other productive sectors of the economy.
“Lower diesel prices ultimately translate into lower costs for businesses and greater relief for Kenyan families,” Wandayi said.
The Cabinet secretary acknowledged concerns raised by manufacturers regarding increasing production costs, cash flow constraints, and heightened competition in global markets, describing them as valid and important issues that require urgent attention.
“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,” he noted.
He reiterated the government’s commitment to ensuring that energy remains a catalyst for economic growth by providing affordable, reliable, and sustainable power that enhances the competitiveness of local industries.
Wandayi further underscored the need for policy alignment and regulatory certainty, saying these factors play a critical role in business viability and investment decisions.
“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,” he said.
The CS emphasized that a vibrant manufacturing sector was essential not only for business growth but also for the livelihoods of millions of Kenyans and the resilience of the national economy.
Looking ahead, Wandayi said the government would continue investing in electricity generation, transmission infrastructure, and renewable energy projects to strengthen the country’s long-term energy security.
“Our objective is clear: to provide a stable, affordable, and sustainable energy system that powers industry, creates jobs, and improves livelihoods,” he stated.
He assured Kenyans that the government would continue engaging stakeholders, honouring its commitments, and implementing practical measures aimed at protecting consumers, supporting businesses, and strengthening the economy.
“Our message to Kenyans is one of confidence and hope. We will continue to engage openly, keep our commitments, and take practical measures that protect consumers, support businesses, and strengthen our economy,” said Wandayi.
The government’s renewed engagement with manufacturers comes as Kenya seeks to accelerate industrial growth, improve the ease of doing business, and position the country as a competitive manufacturing hub in the region through a stable and affordable energy supply.
By Catherine Odoyo
