Nairobi, June 3 -- Kenya has frozen a planned review of electricity prices for the year starting July 1, dealing a blow to efforts to increase revenues for Kenya Power and other utilities in the energy sector.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi said on Wednesday that Kenya Power had withdrawn its application for new tariffs amid concerns that a review could have led to higher electricity costs.

The withdrawal of the tariff application is set to derail efforts to secure additional funding for utilities in the energy sector, raising questions about their ability to deliver key projects if alternative funding sources are not found.

The proposed tariffs could have seen households and businesses pay more for electricity, p...