The World Bank’s 34th Kenya Economic Update places the average cost of electricity for businesses at roughly 17.5 US cents per kilowatt‑hour, compared with about 11.8 cents in Uganda and 7.8 cents in Vietnam.

Network losses in Kenya are reported at over 23 percent, well above the regulator’s target of 16.5 percent, with the excess attributed to both technical inefficiencies and non‑technical losses such as theft and billing weaknesses.

High electricity prices are said to diminish the competitiveness of processing milk, milling grain and operating workshops, leading some owners to raise product prices, postpone hiring or rely on diesel generators as a backup.

The analysis urges the government and regulators to publish concise summaries of power‑purchase agreements, disclose beneficial ownership and clarify capacity‑obligation terms, while limiting commercial confidentiality to narrowly justified cases.

It also recommends that new power projects undergo competitive procurement and independent value‑for‑money testing, and that Kenya Power provide independently verified reports on loss‑reduction performance.

While cheaper energy alone will not trigger a manufacturing boom, the commentary stresses that a credible industrial policy must begin with a monthly power bill that enables factories to compete rather than merely survive.