Kenya Power Explains Why Same Payment Yields Different Electricity Tokens

Two neighbors pay the same Ksh 500 for electricity tokens — but one gets 20 units, the other only 15. It’s not a glitch. It’s the system. On July 15, 2025, Kenya Power and Lighting Company (KPLC) finally broke its silence after months of public outcry over wildly inconsistent token amounts. The next day, Rosemary Oduor, General Manager of Commercial Services and Sales at Kenya Power and Lighting Company, laid it all out: the variation isn’t random. It’s math — and it’s tied directly to how much electricity you’ve used over the past three months.

How the Three-Tier Tariff System Works

Kenya Power doesn’t charge everyone the same rate per unit. Instead, it divides customers into three bands based on their three-month average consumption. If you used 25 units per month on average? You’re in the Lifeline Band, paying just Ksh 12.23 per unit. That’s the subsidized tier, designed for low-income households. But cross into the Economy Band — 31 to 100 units per month — and your rate jumps to Ksh 16.45. Go above 100 units? Welcome to the Standard Band, where each unit costs Ksh 19.08. Oduor confirmed this during a Citizen TV panel, adding that some customers in the highest tier face rates as high as Ksh 20.58 depending on additional adjustments.

Here’s the catch: your band isn’t determined by what you pay today. It’s determined by what you used last March, April, and May. So if you slashed your usage in June to save money, you might still be stuck in the higher tier until August. And if you used 105 units in May, 115 in June, and 120 in July? Your average is 113.3 — that puts you squarely in the top tier for August, even if you plan to cut back.

The Hidden Costs Behind Every Token

What you see on your receipt isn’t the full story. The formula is simple — but layered:

Token Units = (Amount Paid – Service Fees & Taxes) ÷ Tariff Rate

But those ‘fees and taxes’? They’re not just VAT. Kenya Power’s total cost structure includes at least six add-ons:

• 16% VAT — fixed, but still eats into your unit count
• Fuel Cost Charge (FCC) — changes monthly based on diesel and gas prices
• Foreign Exchange Rate Fluctuation Adjustment (FERFA) — because Kenya imports most of its power equipment
• Inflation Adjustment (IA) — updated quarterly
• Water Management Authority (WARMA) Levy — variable, tied to hydroelectric output from the previous month
• ERC Levy (8 cents/kWh) and REP Levy (5% of base rate) — regulatory fees

Stimatracker.com’s July 2025 data shows even the power factor surcharge kicks in if your home’s electrical efficiency dips below 0.9 — a hidden penalty most customers never realize they’re paying. So when you buy Ksh 800 and get only 31.3 units, as one consumer reported, that’s not a scam. It’s Ksh 516.25 divided by Ksh 16.49 — after every levy is peeled off.

Who Gets Hit Hardest — And Why

It’s not just about usage. It’s about timing and circumstance. A family that uses more electricity during the dry season — because they’re running water pumps or heaters — can suddenly jump from Economy to Standard Band. And once they do, they’re locked in for three months. No amount of frugality in August will help if May-July was high.

And then there’s the last-mile group — nearly 1.2 million households that got new connections through KPLC’s government-backed programs. For them, half of every token purchase goes toward repaying the upfront cost of wiring their homes. So a Ksh 100 token? Only Ksh 50 buys electricity. The rest pays for infrastructure. That’s not a secret. But it’s rarely explained at the point of sale.

As Africa Energy News reported, Ksh 500 can yield anywhere from 14 to 20 units depending on these variables. That’s a 43% swing in value for the same cash. For families living on Ksh 15,000 a month, that’s not a rounding error — it’s a budget breaker.

What This Means for Kenyan Households

Imagine planning your monthly budget around getting 20 units from Ksh 500. Then you get 15. Suddenly, you’re choosing between charging your phone, running the fridge, or keeping the lights on at night. The system isn’t designed to punish — but it doesn’t cushion the blow either. The three-month lag means consumers are always reacting to past behavior, not future needs.

What’s worse? There’s no transparency tool. No app. No simple calculator on the KPLC website that tells you, “Based on your last three months, your rate is Ksh 19.08. Here’s how many units you’ll get for Ksh 500.” Customers are left guessing — and frustrated.

What Comes Next

KPLC says it’s working on a real-time consumption dashboard — but no timeline has been given. In the meantime, experts recommend three actions:

1. Track your monthly usage — write it down. Don’t rely on token receipts alone.
2. Calculate your effective rate — divide the amount spent on actual electricity (after fees) by the units received. That’s your true cost.
3. Plan ahead — if you’re hovering near the 100-unit threshold, try to reduce usage for two months to avoid the jump.

And for those in the Lifeline Band? Be careful. A single month of higher usage — maybe because of a new appliance or a sick relative using medical equipment — can push you into a higher tier. And once you’re there, the subsidy disappears. No warning. No grace period.

Why This Matters Beyond the Bill

This isn’t just about electricity. It’s about equity. The three-tier system was meant to be progressive — charge more to those who use more, protect the poor. But in practice, it’s punishing the vulnerable who are trying to adapt. A mother working from home during lockdown might have doubled her usage. A student studying late with a fan and laptop. A small business owner running a fridge for milk or medicine. They didn’t choose to be in the Standard Band. The system forced them there.

And when inflation hits, and fuel prices spike, and the exchange rate drops — those hidden levies get passed directly to consumers. No government subsidy. No cap. Just less power for the same money.

Kenya Power says it’s following international best practices. But in countries like South Africa and Ghana, utilities offer monthly alerts, tier thresholds, and even SMS-based usage forecasts. Kenya hasn’t. Not yet.