Local Manufacturers in Nairobi Push for Lower Energy Tariffs

Local manufacturers have intensified calls for lower energy tariffs, arguing that high electricity costs are undermining competitiveness and slowing industrial growth. Industry leaders raised the issue during a county consultative forum, noting that energy expenses account for a significant share of production costs, especially in sectors such as cement, textiles, steel, and food processing.
Manufacturers emphasized that reducing tariffs would enable them to expand operations, create jobs, and attract foreign investment. They pointed out that neighboring countries with lower energy costs are gaining a competitive edge, making it harder for Nairobi-based firms to compete in regional and global markets. The push for tariff reductions aligns with Nairobi County’s broader Industrial Innovation Zone initiative (November 27, 2025), which aims to attract manufacturers through modern infrastructure and incentives.
County officials acknowledged the concerns and confirmed that discussions are underway with the Energy and Petroleum Regulatory Authority (EPRA) and the national government to explore tariff adjustments. They also highlighted ongoing investments in renewable energy projects, smart grids, and energy efficiency programs, which are expected to reduce costs in the medium term. Analysts argue that aligning energy reforms with industrial policy could save businesses billions annually, complementing the county’s recent transport reforms (November 22, 2025).
Looking ahead, manufacturers are urging the county to integrate AI-powered energy management systems, blockchain-based billing transparency, and green energy subsidies into the industrial framework. Officials believe that by modernizing energy policy and infrastructure, Nairobi can accelerate industrial growth, strengthen competitiveness, and reinforce its role as East Africa’s manufacturing hub.