EPRA's 2026 regulations make energy audits mandatory for facilities consuming over 180,000 kWh annually, require 50% of audit savings to be implemented, and open the electricity market to direct power purchase agreements — here is what large energy users must do.
The Energy and Petroleum Regulatory Authority (EPRA) has introduced significant regulatory changes in 2026 aimed at modernising Kenya's energy sector, enhancing industrial efficiency, and breaking the monopoly on electricity supply. For large energy users — manufacturers, industrial parks, and major commercial facilities — these regulations move energy management from a voluntary best practice to a strict compliance requirement, while simultaneously opening competitive new avenues for energy procurement.
1. Energy (Energy Management) Regulations, 2025/2026
These regulations specifically target large commercial, industrial, and institutional facilities that consume over 180,000 kWh of electrical and thermal energy annually. The goal is to lower operational costs for businesses while reducing pressure on the national grid.
Mandatory Energy Audits
Facilities must conduct comprehensive energy audits at least once every four years. These audits must be carried out by EPRA-licensed energy auditors and submitted to the regulator within the prescribed timelines. Non-compliance carries financial penalties and potential operational restrictions. The audit must cover thermal systems (boilers, steam, heat recovery), electrical systems (motors, drives, lighting, power factor), and compressed air — the three largest loss areas in most Kenyan manufacturing facilities.
Performance Targets — 50% of Projected Savings
It is not enough to conduct an audit and file the report. Organisations are required to implement audit recommendations and achieve at least 50% of the projected energy savings identified. EPRA will track compliance through mandatory annual reporting, making energy performance a board-level agenda item rather than a facilities management footnote. For most manufacturing facilities, this target is readily achievable: the average Lean Energy audit identifies savings of 18–35% of total energy spend, meaning only half of those recommendations need to be implemented to satisfy the regulator.
Internal Governance Requirements
Every qualifying organisation must appoint a licensed energy manager and establish an internal energy management committee. This governance requirement ensures energy efficiency is institutionalised rather than treated as a one-off project. Organisations that already have an ISO 50001 energy management system in place will find these requirements largely overlap with existing frameworks, though the EPRA licensing requirement for the energy manager is specific and must be verified.
2. Energy (Electricity Market, Bulk Supply, and Open Access) Regulations, 2026
Gazetted in May 2026, these regulations represent a structural transformation of Kenya's electricity market. For the first time, independent power producers are permitted to sell electricity directly to large consumers, effectively bypassing Kenya Power's monopoly for high-demand transactions.
Eligibility is set at consumers drawing at least 1 MVA from the distribution network or 10 MVA from the transmission network — criteria that capture most large factories, industrial parks, and major commercial properties. Power producers can use existing Kenya Power and KETRACO infrastructure to deliver power to these clients by paying a 'wheeling' fee, making the logistics of direct supply commercially viable without requiring dedicated transmission lines.
Direct contracts between producers and consumers can run from one to ten years, with pricing approved by EPRA. This creates meaningful contractual stability for capital-intensive industries that need predictable energy costs over multi-year planning horizons. Strategically, this opens the door for large industries — which historically account for approximately 70% of Kenya Power's sales — to negotiate more reliable or cost-effective supply terms, while potentially freeing up grid capacity for smaller users and creating what regulators describe as 'virtual power plants' at the distribution level.
3. Appliance Efficiency Standards
EPRA has simultaneously enforced the Energy (Appliances' Energy Performance and Labelling) Regulations, which set Minimum Energy Performance Standards (MEPS) for electrical appliances manufactured or imported into Kenya. The scope covers refrigerators, air conditioners, lighting systems, and electric motors — equipment categories that collectively represent a major share of industrial and commercial electricity consumption.
For procurement managers sourcing industrial motors or HVAC systems, EPRA compliance is now a contractual specification, not an optional preference. Suppliers who cannot provide MEPS certification for their equipment are no longer legally eligible to supply the Kenyan market, and purchasers who knowingly source non-compliant appliances bear shared liability.
Compliance Timeline — The Window Is Shorter Than It Looks
The December 2026 compliance window is shorter than it appears. Energy audits must be commissioned, conducted, and submitted — a process that typically requires three to six months for large industrial facilities. Organisations that have not already initiated their audit programme should treat the current quarter as the last viable window to engage a licensed energy auditor and meet the deadline without regulatory risk.
Lean Energy Solutions holds EPRA-accredited energy auditors and can manage your compliance process end to end: audit scoping, site surveys, data analysis, regulatory submission, and implementation of the highest-priority savings measures. Our audit scope covers thermal, electrical, and compressed air systems — delivering the comprehensive coverage EPRA's regulations require. Contact our team to discuss your compliance timeline before the window closes.
Faith Wanjiku
Energy Specialist, Lean Energy Solutions Kenya
