How Much Kenya Power Will Pay Customers for Extended Blackouts

Hello and welcome to the Money News Roundup Newsletter, where we are covering KPLC’s compensation to customers over outages, the suspension of Kenya Ports Authority’s new high fee tariffs, and NSE interest yields dropping below T-Bill rates.

Kenya Power to Pay Customers Over Blackouts

Kenya Power, which trades under the KPLC ticker on the Nairobi Securities Exchange, will be required to compensate its customers for extended blackouts if the Draft Energy (Electricity Reliability, Quality of Supply and Service) Regulations, 2025, are adopted.

A report by Business Daily indicated that the compensation will be equivalent to 75% of the customer’s average daily consumption for extended blackouts.

Prepaid customers will receive free tokens, while postpaid customers will have their bills adjusted.

Under this arrangement, compensation for small domestic users who consume less than 30 units will be capped at Ksh2.92 per day, while those consuming between 30 and 100 units will receive Ksh37.50. Large consumers such as factories that use 66 kilovolts (kV) will get up to Ksh550,559.85.

Compensation rates for connection delays during planned outages:

• Domestic users: up to Ksh3.75
• Consumers using between 100 and 15,000 units a month: Ksh1,570
• Large power consumers such as factories: capped at Ksh734,079.80

Additional compensation will be awarded in cases of property damage, financial losses for businesses, bodily harm, or death attributed to blackouts, as well as failure to restore power on time.

Compensation claims: For damaged property, consumers must provide invoices, valuation reports, or medical reports and treatment notes. According to the draft regulations, compensation claims must be filed within a year of the breach, with reparations and token rewards settled within 90 days after EPRA approves the claim.

Catch Up Quick: Kenya Power has 10.06 million customers and posted a profit of Ksh9.97 billion in the six months to December 2024.

High Court Halts KPA’s New Service Tariffs

The High Court has put on hold new tariffs introduced by the Kenya Ports Authority (KPA), which were set to take effect on September 15, 2025. Justice Jairus Ngaah issued the suspension after granting the Container Freight Station Association of Kenya (CFSAK) permission to challenge the charges. The revised rates — announced in August to replace those in place since 2012 — would have seen trucking fees jump from Ksh3,000 to Ksh15,000 and introduced an annual licence fee of Ksh38,746.84 ($300) for clearing and forwarding agents, alongside higher charges for marine services, stevedoring, shore handling, and wharfage.

CFSAK argues that the Tariff Book 2025 unfairly favors Inland Container Depots (ICDs) over Container Freight Stations (CFSs), even though both are recognized customs areas. The association also claims KPA failed to carry out proper stakeholder consultations or cost-benefit analysis and imposed charges for services it does not actually perform. The case will be mentioned on October 1, according to Business Daily.

Nairobi Set to Host More Global Institutions

Kenya’s global profile is rising as Nairobi attracts more international organisations. By next year, UNICEF, UNFPA, and UN Women will open global offices in Gigiri, joining UNEP and UN-Habita. This will make Nairobi one of only four cities worldwide — alongside New York, Geneva, and Vienna — to host multiple UN headquarters.

The World Food Programme has also moved its regional hub from Johannesburg to Nairobi, while the U.S. Committee for Refugees and Immigrants set up a local office in 2024.

The shift is expected to create jobs and boost foreign exchange. Government incentives such as tax exemptions, diplomatic privileges, and legal protections have helped draw these organisations, alongside President William Ruto’s “Silicon Savannah” push and Nairobi’s relative stability. With modern facilities, fibre internet, and strong air connections, Nairobi is cementing its place as Africa’s top hub for international operations, according to Kenyans.co.ke.

Meanwhile, The Standard reports that the United Nations Office in Nairobi will spend Ksh43 billion on the construction and renovation of conference facilities and office blocks.

Dividend Yields at NSE Fall Below T-Bill Rates

A rally in share prices at the Nairobi Securities Exchange (NSE) has cut dividend yields for most listed firms, leaving them below the one-year Treasury bill rate of 9.5 percent. Out of 31 companies that paid dividends this year, 25 now have yields under 10 percent, compared to 16 a year ago. Treasury bonds, meanwhile, are offering higher returns of between 12 and 14 percent, according to Business Daily.

In the past year, NSE investor wealth rose by Ksh1.15 trillion to Ksh2.82 trillion, driven by sharp price gains in blue-chip stocks. This has pulled down yields despite some firms increasing payouts. Safaricom’s yield has dropped to 4.1 percent from 8.08 percent, while BAT Kenya’s stands at 11.2 percent and EABL’s at 3.5 percent. Only three banks—Standard Chartered at 14.5 percent, BK Group at 10.9 percent, and Stanbic at 11.41 percent—still offer double-digit yields.

Fuel Consumption Hits Record High

Kenya’s consumption of diesel and petrol rose to a record 1.93 million metric tonnes in the first half of 2025, lifted by lower pump prices and more cars on the road. This marked a 9.4 percent rebound from last year’s slump, when demand fell to a five-year low. Average petrol prices in Nairobi dropped to Ksh176.05 per litre from Ksh198.23 in 2024, while diesel eased to Ksh165.64 from Ksh185.83. New vehicle sales also surged 25 percent, helping drive demand, according to Business Daily.

The rebound boosted government revenues, with collections from the Petroleum Development Levy rising nearly nine percent to Ksh26.37 billion. The growth comes amid a government-to-government oil supply deal with Saudi Arabia and the UAE, which has eased dollar demand and stabilized the shilling despite criticism over reduced competition. Kenya has renewed the credit-based fuel supply arrangement for two more years.

Kenya’s Job Crisis Deepens Amid High Taxes and Debt

Three years into the Kenya Kwanza administration, job creation remains sluggish, with only 782,300 new jobs created in 2024 compared to 848,200 the previous year. Despite campaign promises, most Kenyans — especially the youth — continue to face limited opportunities as inflation, pending bills, and public debt strain the economy, according to People Daily.

Businesses are struggling with cash flow as government arrears hit Ksh524.84 billion by June 2025, while ballooning public debt of Ksh11.7 trillion diverts funds away from development. High taxation, costly compliance measures, and reduced access to affordable loans have further slowed growth, leaving firms downsizing, shelving investments, or closing altogether.

South Korea, UK Emerge as Key Markets for Kenya’s Pyrethrum

Kenya’s pyrethrum exports are shifting toward Asia and emerging European markets, with South Korea and the UK now driving growth. In 2024, Kenya exported 30,584 kg of refined extract, with Belgium still leading at 46.7 percent of exports. South Korea accounted for 8,550 kg (27.9 percent), while the UK imported 3,136 kg (10.2 percent), according to Daily Nation.

The Agriculture and Food Authority noted that while traditional buyers such as Spain cut back, demand in new markets is rising. Italy, Brazil, the U.S., Mexico, and South Africa also featured as smaller importers. Officials say the evolving dynamics call for diversification and strategic engagement to expand Kenya’s global pyrethrum footprint.

Access Bank Names New Kenya CEO Ahead of NBK Merger

Access Bank Kenya has appointed Ralph Chinedu Opara, formerly Group Head of Commercial Banking at the Lagos-based parent firm, as its new CEO to steer the subsidiary through its merger with National Bank of Kenya, reports Business Daily. He succeeds Lilian Odhiambo, who now serves as Executive Director, Wholesale Banking. The appointment follows Access Bank’s acquisition of NBK in May, marking its second Kenyan takeover after Transnational Bank in 2020, as part of its East Africa expansion strategy.