KENYA Law and Practice Contributed by: Mary Waithiegeni Chege, Mary Anne Wachira and Joy Odhiambo, EMSI & Asssociates
consumer upon the payment of fair and reasonable transmission or wheeling charges. 4.6 Transmission Charges and Terms of Service Transmission charges and terms of service in Kenya are established through a regulated framework under the Energy Act and the Energy (Electricity Market, Bulk Supply and Open Access) Regulations, with strong oversight by EPRA. Under the Energy Act, all contracts for bulk supply and network services, including transmission arrange- ments, must be approved by EPRA before execution to ensure that tariffs and charges are just, reason- able and cost-reflective. The Act further empowers EPRA to set, review and adjust electricity tariffs and tariff structures, and specifically requires licences to include provisions for determining charges for use of transmission and distribution networks. Transmission tariffs (wheeling charges) are therefore subject to reg- ulatory approval and ongoing review. The Electricity Market Regulations complement this framework by requiring bulk supply tariffs and network service tariffs to be approved by EPRA and applied in accordance with market rules. They also mandate non-discriminatory open access to transmission net- works, meaning that charges must be applied fairly to all users and not create barriers to entry. Transmission terms of service are further governed by: • standardised contracts (eg, wheeling agreements and bulk supply agreements) subject to EPRA approval; • compliance with the Grid Code, which sets techni- cal and operational standards for system access and reliability; and • oversight by the system operator, which ensures efficient dispatch, congestion management and system stability. In addition, licensees are required to maintain data on the quality and reliability of supply, which informs regulatory review of service standards.
Overall, transmission charges and service terms are centrally regulated, contract-based and subject to transparency, non-discrimination and periodic regu- latory oversight, to ensure efficiency, fairness and system reliability. 4.7 Open-Access and Non-Discriminatory Transmission The Energy Act defines open access as the non-dis- criminatory use of transmission or distribution systems by any licensee or eligible consumer, subject to the payment of fair and reasonable charges. It imposes a duty on transmission licensees to grant such access on transparent terms, thereby promoting competition and efficient utilisation of network infrastructure. Open access in the transmission segment is governed primarily by Section 136 of the Energy Act and the Energy (Electricity Market, Bulk Supply and Open Access) Regulations. EPRA is responsible for regu- lating this framework, including approving wheeling charges, contractual arrangements and access con- ditions. All access agreements, particularly wheeling agreements, must be submitted to EPRA for approval, to ensure fairness, cost-reflectivity and compliance with regulatory standards. Under the 2026 Regulations, a licensee or eligible con- sumer seeking access must submit a formal applica- tion to the transmission licensee, who then conducts a technical assessment within 30 days and submits its findings to the system operator for a “no-objec- tion”. Following this, a determination must be made within 45 days, after which the parties may negotiate a wheeling agreement. The agreement must then be approved by EPRA within 60 days before taking effect. The system operator, designated under the Energy Act, plays a critical role in ensuring system stability, dispatch co-ordination and congestion management, while remaining independent of electricity trading activities. Open access is subject to conditions including suf- ficient network capacity, compliance with the Grid Code and the payment of wheeling charges. The Reg- ulations also set a minimum load threshold of 10 MVA for transmission-level access and allow operational
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