The Energy and Petroleum Regulatory Authority (EPRA) has urged Kenya’s industrial and manufacturing firms to adopt energy efficiency measures to reduce operating costs and free up electricity for wider distribution, following the rollout of new energy management rules.

In a press release dated March 11, 2026, EPRA said the push targets industries that are among the country’s largest energy consumers and aims to lower energy used per unit of output while maintaining or increasing production. The regulator’s call was made in Nairobi during a meeting attended by chief executives and leaders from the industry and manufacturing sectors.

The agency cited data from its Energy and Petroleum Statistics report for June to December 2025, which shows the industrial category consumed 2,924.48 GWh of electricity, up 4.18% from 2,807.10 GWh in the same period of 2024. EPRA said this consumption accounted for 49.25% of Kenya’s total electricity use over the period.

Against this backdrop, EPRA said the Energy (Energy Management) Regulations, 2025, set “clear expectations for energy management across commercial, industrial and institutional facilities” that consume more than 180,000 kWh of electrical and thermal energy annually. EPRA said the regulations are intended to promote efficient and sustainable energy consumption as demand grows.

Alex Wachira, Principal Secretary in the State Department of Energy, told the meeting that investments in energy efficiency could release capacity across the system without building new generation plants. “By so doing, industries will free up power, thereby creating what is referred to as virtual power plants’,” Wachira said, according to the press release. He added that the saved electricity could be distributed to more factories, homes and commercial centres “without having to invest in new power plants.”

EPRA Director General Daniel Kiptoo Bargoria outlined compliance expectations for qualifying facilities, including periodic audits and internal governance structures. “Among other things, the Regulations require that facilities conduct comprehensive energy audits once every four years, implement the recommendations and realise at least 50% of the projected savings, appoint a licensed energy manager and establish an internal energy management committee,” Kiptoo Bargoria said. He said the measures are designed to strengthen corporate governance practices linked to competitiveness and resilience.

Beyond industrial facilities, EPRA said it is also implementing the Energy (Appliances’ Energy Performance and Labelling) Regulations to ensure that appliances manufactured locally or imported into Kenya meet Minimum Energy Performance Standards (MEPS). EPRA said the measures target products such as refrigerators, air conditioners, lighting appliances and motors, which are significant contributors to electricity demand in homes and commercial facilities.

The developments matter for Kenya’s business environment as electricity costs remain a major input for manufacturing and heavy industry, while the grid continues to balance demand growth from households, services and industrial expansion. By directing large consumers to reduce wastage and improve management systems, EPRA’s approach could lower peak demand pressure and improve reliability for firms that depend on stable power.

For manufacturers and other high-consuming facilities, the regulations could also drive increased spending on energy audits, monitoring systems and efficiency upgrades, as well as the use of licensed energy managers. In the near term, industry players may need to review compliance timelines, audit cycles and the feasibility of meeting the requirement to realise at least half of projected savings from audit recommendations, as stated by EPRA.

EPRA said the regulations apply to facilities above the 180,000 kWh annual threshold and will guide energy management practices across commercial, industrial and institutional users. Further implementation details are expected to shape how quickly firms adopt audits, governance structures and appliance standards enforcement across supply chains.