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Off-peak power use saves firms Sh971m as uptake of night tariff jumps
Since 2017, industrial and commercial firms have taken advantage of the discounted Time-of-Use (ToU) tariff, under which Kenya Power offers a 50 percent discount to companies operating during off-peak hours, when electricity costs are lower.
Industrial and commercial consumers capitalised on discounted tariffs to shift production to off-peak hours, saving Sh971 million in power bills in the six months to December 2025.
Fresh disclosures by the Energy and Petroleum Regulatory Authority (Epra) show that these users consumed 148 gigawatt-hours (GWh) of power under a special tariff scheme during the period, a 74 percent increase from 84.9 GWh in the same period a year earlier.
Since 2017, industrial and commercial firms have taken advantage of the discounted Time-of-Use (ToU) tariff, under which Kenya Power offers a 50 percent discount to companies operating during off-peak hours, when electricity costs are lower.
The scheme is designed to encourage electricity use at night, over weekends and during public holidays, when demand is typically low.
Epra data shows that savings from electricity consumption between July and December 2025 rose from Sh688.7 million in the corresponding period in 2024, signalling that more firms are shifting production to night off-peak hours to benefit from the tariff.
ToU was introduced in December 2017 to boost electricity consumption among commercial and industrial customers during off-peak hours. It has since been extended to small commercial users and electric vehicles (EVs).
“During the review period, 148GWh of energy was sold under the ToU tariff, an increase from 84.9GWh in the same period of the previous year. The ToU beneficiaries cumulatively saved Sh971 million during the review period,” Epra says in the report.
The highest number of beneficiaries was recorded in November, with 2,937 consumers saving Sh196.8 million. However, the largest monthly savings of Sh208.4 million were recorded in December, by 2,918 beneficiaries.
Under the ToU structure, the base tariff is discounted by 50 percent between 2200 hours and 0600 hours on weekdays, midnight to 0800 hours and 1400 hours to 0000 hours on Saturdays, and throughout public holidays.
The discount also applies for the entire day on Sundays, provided consumption thresholds are met.
The tariff was introduced to help the economy utilise idle power at night when demand is lowest, while supporting the shift towards a 24-hour economy. It also aims to flatten the demand curve and enhance grid stability by optimising the use of available generation capacity.
Electricity costs have long been a major challenge for industrial and commercial consumers, underscoring the role of ToU in helping firms manage power bills.
Higher off-peak consumption also benefits Kenya Power by reducing electricity curtailment and increasing overall sales volumes, albeit at lower unit prices.
The strong uptake of ToU in the six months to December 2025 positions firms to surpass both consumption and savings recorded in the full year.
In the year ended June 2025, consumers used 180.3 GWh under ToU, translating into total savings of Sh1.44 billion.
