Kenya’s newly introduced Energy (Energy Management) Regulations, 2025 are poised to lower production costs and promote sustainable energy use across the country, according to industry experts including Njeru, Keter, and Musonye.
Energy costs significantly influence national productivity by affecting sectors such as manufacturing, transport, agriculture, and services. High energy expenses often lead to increased prices and reduced profitability. For developing economies like Kenya—aiming for upper-middle-income status—energy efficiency is seen as a key strategy to drive affordability and competitiveness.
The Energy and Petroleum Regulatory Authority (EPRA), tasked with enforcing efficiency and conservation, has rolled out two major initiatives under the new regulations: Energy Management and Standards & Labelling. These frameworks are designed to promote energy-saving measures in designated facilities.
Under the 2025 regulations, any industrial, commercial, or institutional facility consuming more than 180,000 kWh of thermal or electrical energy annually must establish energy management programmes. Such facilities will be required to conduct energy audits every four years and implement at least 50% of the recommended energy-saving actions.
The regulations also make it mandatory for organizations to integrate energy management into daily operations by appointing licensed energy managers, developing energy policies, and preparing investment plans for conservation projects.
To ensure accountability and progress, EPRA will set energy performance benchmarks across different sectors. Facilities that achieve these targets can apply for Energy Savings Certificates, which will serve as tradable credits for those yet to meet the benchmarks.
Additionally, the framework will support the licensing of Energy Service Companies (ESCOs) to provide technical and financial expertise in implementing energy efficiency projects. The African Development Bank’s Super ESCO initiative is expected to further strengthen Kenya’s ESCO ecosystem, with a focus on financing and supporting public sector energy-saving projects.
EPRA anticipates that these reforms will lead to reduced production costs, lower consumer prices, and increased competitiveness for Kenyan industries. Moreover, the resulting decline in greenhouse gas emissions will support Kenya’s Nationally Determined Contributions (NDCs) under global climate goals.
Experts believe the successful rollout of the regulations will not only enhance energy sustainability but also position Kenya as a regional leader in green economic transformation.