NAIROBI, KENYA – The Energy and Petroleum Regulatory Authority (EPRA) has rolled out a comprehensive set of energy-saving regulations, compelling industrial, commercial, and institutional facilities with high consumption to adopt stringent efficiency measures. The new framework, detailed in the Energy (Energy Management) Regulations, 2025, which were officially published in February 2025, marks a significant policy shift aimed at bolstering national sustainability, reducing pressure on the electricity grid, and lowering the cost of energy.

Under the updated rules, which repeal the 2012 regulations, any facility consuming more than 180,000 kilowatt-hours (kWh) of electrical and thermal energy annually is now required to conduct a licensed energy audit every four years. Following the audit, these designated facilities must submit an Energy Investment Plan to EPRA within six months and are mandated to implement at least 50% of the identified energy-saving recommendations within a three-year period.

Failure to comply with these mandates could attract significant penalties, including administrative fines of up to KSh 1 million per violation, according to a report from September 2025. The regulations are part of a broader government strategy to embed energy efficiency as a core business practice rather than a mere compliance exercise. EPRA Director General Daniel Kiptoo stated in October 2025 that the reforms are “strategic tools designed to help us plan more effectively for Kenya's growing energy demand” and align the sector with national development goals.

Impact on Business and Green Economy

The regulations introduce new operational requirements for Kenya’s largest power consumers, particularly in the manufacturing sector. Each designated facility must now appoint an EPRA-licensed Energy Manager and establish an internal Energy Management Committee to oversee efficiency initiatives. This is expected to drive innovation, create green jobs, and foster a market for Energy Service Companies (ESCOs), which help finance and implement energy-saving projects.

The Kenya Association of Manufacturers (KAM), which has long advocated for policies to address the high cost of electricity, has acknowledged the transition towards clean energy. Speaking at a conference in May 2025, KAM CEO Tobias Alando called for “policy consistency, public-private collaboration, and affordability” to ensure a smooth transition for industries. While the new rules impose compliance costs, they also offer long-term benefits through reduced operational expenses and enhanced competitiveness. The introduction of tradable Energy Savings Certificates for facilities that exceed performance benchmarks is designed to create a financial incentive for outperformance.

Alignment with National and Global Climate Goals

These domestic regulations are a critical component of Kenya's strategy to meet its international climate commitments. The nation's updated Nationally Determined Contribution (NDC) under the Paris Agreement pledges to reduce greenhouse gas emissions by 32% by 2030 compared to a business-as-usual scenario. The energy sector is expected to contribute significantly to this target.

The push for efficiency complements Kenya's progress in renewable energy generation, where sources like geothermal and hydro dominate. However, with growing industrialization and urbanization, managing demand is as crucial as expanding supply. The regulations also align with broader East African Community (EAC) efforts, which in September 2025 adopted regional Minimum Energy Performance Standards (MEPS) for cooling appliances to prevent the region from becoming a dumping ground for inefficient products.

In addition to industrial management, EPRA is enforcing the Energy (Appliances' Energy Performance and Labeling) Regulations of 2016. This program uses a five-star rating system to help consumers make informed decisions and mandates that appliances like refrigerators, air conditioners, and motors meet MEPS before being sold in the Kenyan market.

By institutionalizing energy management, the government aims to create a resilient and competitive energy sector, reduce the national cost of living, and solidify Kenya's position as a leader in Africa's sustainable energy transition.