Why good regulation is the engine behind Kenya’s energy success

This story has significance for readers across Kenya and beyond.

Kenya’s energy sector story in 2026 is one of growth, transition and ambition. From the wind farms of Turkana to the geothermal wells of Olkaria, from LPG in our kitchens to fuel at the pump, one institution sits at the centre of it all: the Energy and Petroleum Regulatory Authority (Epra).

While headlines often focus on tariffs, fuel prices and blackouts, the real driver of progress is less visible - a strong legal and regulatory framework backed by consistent regulatory practice. Good regulation is the difference between a sector that functions efficiently and one plagued by uncertainty.

The Energy Act, 2019 and the Petroleum Act, 2019 gave Epra a clear mandate to regulate, licence and protect consumers without operating energy companies. This separation of policy, regulation and operations has created confidence among investors in independent power producers, public-private partnerships and LPG infrastructure.

Clear licensing timelines, transparent tariff methodologies and dispute resolution mechanisms have helped attract billions of shillings in private investment into solar, wind and gas projects. Without regulatory certainty, Kenya’s ambition of universal energy access would remain difficult to achieve.

Every month, Kenyans closely watch changes in fuel and electricity prices. Epra’s formula-based fuel pricing reviews and periodic electricity tariff reviews have made pricing more transparent by publicly accounting for factors such as global fuel costs, inflation and exchange rates.

The framework seeks to balance consumer protection with the financial sustainability of utilities responsible for delivering power and fuel.

Epra also plays a critical role in safety and consumer protection. From ensuring fuel pumps are accurately calibrated to enforcing LPG cylinder standards, its oversight helps protect lives and livelihoods.

Kenya is also a global leader in renewable electricity generation, with more than 90 percent of its electricity coming from renewable sources.

The sector is evolving rapidly, bringing new regulatory challenges in electric mobility, battery storage, green hydrogen and cross-border electricity trade. Meeting these opportunities will require greater data transparency, faster digital licensing and continued public participation.

The hardest job of a regulator is balancing affordable prices with a financially viable energy sector. A strong regulator does not slow development - it creates the certainty that powers it.

The writer is Director - Legal, Regulatory and Governance Services, Energy and Petroleum Regulatory Authority (Epra)

Reporting originally appeared via Business Daily. Read the full source for additional context.