Energy and Petroleum Cabinet Secretary Opiyo Wandayi has
reaffirmed the government's commitment to providing affordable, reliable and
sustainable energy to support Kenya's manufacturing sector.
In a statement issued after a consultative meeting with leaders and representatives of the Kenya Association of Manufacturers (KAM), Wandayi said the government is keen on maintaining a stable energy environment despite continued volatility in global energy markets.
"The Government remains firmly committed to ensuring affordable, reliable and sustainable energy for our industries and, in effect, their customers,” Wandayi said.
The Cabinet Secretary noted that consultations with industry players remain critical in addressing challenges facing manufacturers and ensuring that Kenya remains an attractive destination for investment and industrial growth.
He noted that discussions with KAM focused on three key areas: adequacy of energy supply, reliability and quality of electricity, and affordability of energy.
"Continued consultation and engagement has been key to us. We believe that the best solutions are achieved through partnership. Our continued engagement, including this morning's meeting, marks a deeper and more structured collaboration," he said.
Wandayi acknowledged concerns raised by manufacturers
regarding rising production costs, cash flow constraints and increasing
competition in global markets, describing them as valid issues that require
coordinated action between government and industry.
"The concerns raised by industry are both valid and important because energy and production are at the heart of Kenya's economic transformation agenda," he said.
"Manufacturing remains a critical driver of jobs, exports and revenue, and we cannot ignore the pressures that rising production costs and global competition place on our industries."
The CS said the government remains focused on ensuring the long-term sustainability of the energy sector while creating an enabling environment that supports positive cash flow, safeguards jobs and boosts investor confidence.
He highlighted several measures already undertaken by the government to lower the cost of doing business. These include suspending the proposed electricity tariff review and implementing a reduction in electricity costs effective June 2026.
According to Wandayi, electricity prices have reduced by Sh0.2685 per kilowatt-hour, driven by a decline in foreign exchange adjustment costs, lower fuel energy charges and increased hydropower generation.
"This reflects our commitment to ensuring that gains within the sector are shared directly with Kenyans," he said.
The Cabinet Secretary also pointed to the Time-of-Use tariff programme, which offers manufacturers significantly lower electricity costs during off-peak hours, encouraging industries to expand production while reducing operational expenses.
On fuel supply, Wandayi assured manufacturers and consumers that Kenya remains well-positioned despite global uncertainties.
"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.
He further revealed that the government is working towards reducing diesel prices in the next monthly fuel review in line with commitments made by President William Ruto to the transport sector and other industries.
"Lower diesel prices ultimately translate into lower costs for businesses and greater relief for Kenyan families," Wandayi said.
Looking ahead, the Cabinet Secretary said the government is investing heavily in power generation, transmission infrastructure and renewable energy to guarantee long-term energy security.
