In 2023, Kenyan grid customers suffered three national-level blackouts, the worst on record, each lasting over 8 hours. Throughout the year, these customers experienced over 115 hours of power outages. Compounding the problem, electricity tariffs increased by over 11% for commercial and industrial (C&I) customers as diesel prices for thermal power generation soared. These challenges severely disrupted businesses, resulting in higher operating costs.
In response to rising electricity costs and the need for reliability, C&I customers (including malls, hotels, petrol stations, and steel manufacturers) and institutions (such as schools and universities) turned to captive power generation—on-site energy generation primarily intended for own consumption. This trend led to a 60% increase in captive power generation in 2023, with the total capacity reaching 449.5 MW—12.18% of (3,689.5 MW) the country’s total installed capacity.
Over the past five years, C&I businesses have recurrently suffered losses due to power outages, estimated at 5.4% of
