Electricity generation in Kenya is liberalized with several licensed electric power producers, distributors and transmission utilities. The net electrical energy from the power generating plants is bought by the Kenya Power and Lighting Company (KPLC) through power purchase agreements (PPAs) approved by the Authority.

The energy is then conveyed over transmission systems owned by KPLC or the Kenya Electricity Transmission Company (Ketraco), both of whom are licensed by the Authority to provide transmission services.

Finally, KPLC carries out distribution and retail supply of the electrical energy to customers in accordance with licenses and permits issued to it by the Authority. EPRA also approves the retail tariffs charged for the supply.