Kenya Electricity Generating Company (KenGen) has applied to the Energy and Petroleum Regulatory Authority (EPRA) for a licence to sell electricity directly to consumers, according to a notice published in local newspapers on May 26, 2026. If approved, the move would introduce direct competition for Kenya Power, which currently holds a monopoly over electricity distribution in the country.
The application, made under the Energy Act 2019, seeks to allow KenGen to supply power to consumers with a demand of 1 megawatt and above. This would enable large industrial and commercial customers to purchase electricity directly from the generator, bypassing Kenya Power's distribution network.
EPRA has invited public comments on the application within 21 days from the date of publication. The regulator will consider the submissions before making a decision on whether to grant the licence.
KenGen is the largest electricity producer in Kenya, accounting for about 70% of the country's installed capacity, primarily from hydro, geothermal, and thermal sources. The company has been exploring ways to expand its revenue streams and reduce reliance on Kenya Power as its sole customer.
Industry analysts say the move could lower electricity costs for large consumers and improve efficiency in the sector. However, Kenya Power has expressed concerns that direct sales could undermine its financial stability and ability to maintain the national grid.
