NAIROBI, Kenya, Jan 28 – The Energy and Petroleum Regulatory Authority (EPRA) has revoked key investment and tariff-setting guidelines in the power sector, a move that reshapes the regulatory landscape just months after Parliament approved the lifting of the moratorium on new Power Purchase Agreements (PPAs).
In a series of gazette notices dated January 5, 2026, the regulator de-gazetted the Guidelines for the Computation of Allowed Return on Equity, the Guidelines for the Computation of Allowed Return on Investment, and benchmark generation tariffs for geothermal power, all issued under Section 163(3) of the Energy Act, 2019.
“Pursuant to section 163 (3) of the Energy Act, 2019, the Energy and Petroleum Regulatory Authority revokes the Guidelines for the Computation of Allowed Return on Equity for generation, transmission and distribution projects in the country,” EPRA Director-General Daniel Kiptoo Bargoria said.
“Pursuant to section 163 (3) of the Energy Act, 2019, the Energy and Petroleum Regulatory Authority revokes the Guidelines for the Computation of Allowed Return on Investment for generation, transmission and distribution projects in the country.”
In a separate notice, the regulator also withdrew the benchmark tariffs for geothermal power, signaling a broader reset of how returns and pricing will be determined for power projects going forward.
The regulatory overhaul comes against the backdrop of the National Assembly’s November 2025 approval to lift the moratorium on the signing of new PPAs, ending a freeze that had been in place for more than two years.
Lawmakers approved a framework allowing new PPAs to be denominated in Kenya shillings, foreign currency, or a hybrid of both, with the aim of matching local costs to local currency while accommodating foreign-currency financing.
As part of the post-moratorium reforms, Parliament also directed that within six months, the Business Registration Services submit a comprehensive register of owners, beneficial owners, shareholders and directors of all Independent Power Producers operating in Kenya. Any future amendments or variations to PPAs will now require the Attorney-General’s involvement, including advisory and negotiation roles.
The Ministry of Energy and EPRA are also set to transition future energy procurement to a competitive auction model, aligned to gazetted indicative tariffs and the Least Cost Power Development Plan, marking a shift away from negotiated deals toward price-driven allocation of new generation capacity.
