Monday October 26, 2026
Mogadishu (HOL) — Three major Somali electricity providers have increased power tariffs by 5 cents per kilowatt-hour, citing a sharp rise in fuel costs that they say has made it increasingly difficult to maintain electricity supplies at previous prices.
BECO, Muqdisho Power and Blue Sky Energy announced the increase in a joint statement in Mogadishu on Sunday, Oct. 25, saying the new rates took effect immediately.
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“The fuel prices in Somalia have risen by more than 70 percent,” the companies said, explaining that higher operating expenses had forced them to revise electricity charges.
Under the new tariffs, Muqdisho Power customers will pay approximately 38 cents per kilowatt-hour, up from 33 cents, while BECO and Blue Sky Energy have raised their rates from about 41 cents to 46 cents per kilowatt-hour.
The companies described the 5-cent increase as relatively modest compared with the rise in fuel expenses, saying they had considered the economic difficulties facing households and businesses before making the adjustment.
They expressed regret over the additional burden on customers and indicated that electricity prices could be reviewed if fuel costs decline.
The companies attributed the increase partly to instability in the Middle East and disruptions affecting shipping through the Strait of Hormuz, a major route for global oil supplies.
Somalia depends heavily on imported petroleum products to generate electricity, leaving power providers exposed to fluctuations in fuel prices, transportation costs and international supply chains.
Unlike countries with extensive national electricity grids, Somalia relies largely on privately operated electricity companies, many of which use diesel-powered generators to supply homes and businesses.
The latest tariff increase is expected to raise costs for households and businesses in Mogadishu and other areas served by the three providers, adding to existing financial pressures.
For a household consuming 200 kilowatt-hours of electricity a month, the new tariff represents an additional $10 on its monthly bill.
The federal government has not announced any immediate measures to cushion consumers from the price increase or indicated whether it intends to review the companies' decision.