Residents and businesses in Mogadishu will pay more for electricity after three major power suppliers announced a tariff increase of $0.05 per kilowatt-hour, citing a sharp rise in fuel costs that has made it increasingly expensive to generate and distribute power.
The new rates took effect on Sunday, October 25, 2026, following a joint decision by BECO, Mogadishu Power and Blue Sky Energy. The companies said the adjustment was necessary after fuel prices in Somalia rose by more than 70%, putting pressure on their ability to maintain electricity supplies at previous rates.
The increase means customers will face different new tariffs depending on their supplier, with Mogadishu Power moving from $0.33 to $0.38 per kilowatt-hour, while BECO and Blue Sky Energy have each raised their rates from $0.41 to $0.46.
In a joint announcement, the companies linked the rising cost of fuel to global market pressures over the past eight months, citing conflicts in the Middle East and the closure of the Strait of Hormuz as contributing factors. They said international fuel prices had reached unprecedented levels, increasing the cost of running their operations.
The companies acknowledged that the higher tariffs would place an additional burden on consumers but maintained that the increase was smaller than the rise in fuel costs.
How much will electricity now cost?
The adjustment adds five US cents to the price of every kilowatt-hour consumed, meaning the effect on each customer’s bill will depend on how much electricity they use.
| Electricity supplier | Previous rate | New rate |
| Mogadishu Power | $0.33/kWh | $0.38/kWh |
| BECO | $0.41/kWh | $0.46/kWh |
| Blue Sky Energy | $0.41/kWh | $0.46/kWh |
For customers supplied by Mogadishu Power, the rate has increased by approximately 15.2 per cent. For BECO and Blue Sky Energy customers, the five-cent adjustment represents an increase of approximately 12.2 per cent.
The financial impact will vary by household and business, depending on consumption. Customers who use more electricity will pay more in absolute terms under the new rates, even though the increase per unit is the same across all three suppliers.
The companies said the increase followed sustained pressure from rising fuel prices, which they said had climbed by more than 70% in Somalia.
Fuel costs are a major consideration for electricity suppliers that rely on fuel-powered generation. When the cost of fuel rises, operating expenses can increase significantly, placing pressure on companies to adjust tariffs if they are to continue supplying power.
The companies pointed to developments in the Middle East and the closure of the Strait of Hormuz as factors behind the wider rise in global fuel prices. The strategic waterway is an important route for international energy shipments, and disruptions can affect supply and prices in markets that depend on imported fuel.
In their statement, the companies said the five-cent increase was lower than the rise in fuel costs, adding that they had taken into account the difficult economic circumstances facing the public.
“While we regret the rise caused by fuel prices, we hope that change will come in the near future, God willing,” the companies said in their statement.