President William Ruto has announced a new preferential electricity rate of Ksh10 per kilowatt-hour for investors operating within Kenya’s Special Economic Zones (SEZs), aiming to sharpen the country’s industrial competitiveness.
The head of state confirmed the subsidized tariff at State House, Nairobi, on Tuesday, September 8, during the signing ceremony for a private development agreement on the Mombasa Special Economic Zone. The measure directly targets energy overheads, positioning Kenya as a more attractive destination for regional and global manufacturing investments.
“The government will support this industrial ambition with the infrastructure required to make it competitive. This includes a preferential electricity tariff of Ksh10/kWh for special economic zones investors,” Ruto said.
“Our objective is straightforward: to lower the cost of production so that goods made in Kenya can compete successfully in the region and the global market,” he added.
Lowering Overhead Costs for Manufacturers
Power costs represent one of the heaviest operational expenses for energy-intensive manufacturing and industrial enterprises in Kenya. By guaranteeing a capped Ksh10/kWh rate within SEZs, the government seeks to cushion major producers against wider utility price shifts.
The move offers targeted relief to industrial hubs at a time when standard household and commercial electricity bills face pressure from broader tariff adjustments. In August alone, the Energy and Petroleum Regulatory Authority (EPRA) added Ksh4.70 per kilowatt-hour to standard electricity charges across the country.
Rapid Rollout for Mombasa Special Economic Zone
The framework agreement signed at State House kicks off the multi-phase construction of the KSh12 billion Mombasa Special Economic Zone. Development will begin with a 40-hectare initial phase scheduled for completion within six months.
By placing manufacturing plants, logistics hubs, warehousing, and distribution networks in close proximity to the Port of Mombasa, the zone aims to reduce transit times and freight expenses, establishing an efficient supply chain corridor for East African trade.
“Located on 535 acres in Jomvu and linked to the Standard Gauge Railway and our regional transport corridors, the special economic zone will – in its first phase – create 10,000 jobs and position Mombasa not just as a gateway for goods in transit, but as a hub where products are made, processed, assembled, branded, and exported to the East African Community, COMESA, and the wider African market,” Ruto announced.
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