Have you ever paid the same amount for electricity but received fewer units than you did before? If so, you’re not alone—and according to the Kenya Power and Lighting Company (KPLC), this is primarily due to the way electricity consumers are categorized under different tariff bands, which determine how much you pay per unit of electricity.
These categories are based not on a single month’s usage, but on your average electricity consumption over a rolling three-month period. This means that even a slight increase in your usage—say, during a hot month when fans or refrigerators are used more often, or when you host visitors—can push you into a higher tariff bracket, which results in fewer units for the same amount of money. KPLC has defined three main domestic electricity tariffs: DCL-1, also known as the Lifeline tariff, is the most affordable and is reserved for households that consume 30 units or less per month.
Under this category, consumers pay Ksh. 12.33 per unit, making it suitable for low-income households or those with minimal power needs. The second category, DC2-O, is for consumers using between 31 and 100 units monthly and is charged at Ksh. 16.45 per unit—a moderate rate that applies to average households.
The third and most expensive tier, DC3-O, is for high-power users who consume 101 to 15,000 units per month, with each unit costing Ksh. 19.08. These base rates apply to both prepaid (token-based) and postpaid (monthly bill) customers.
However, it’s important to understand that these rates exclude additional charges that are automatically added to your bill. These include the Fuel Cost Charge (FCC), which reflects the cost of diesel and other fuels used to generate thermal power; the Foreign Exchange Rate Fluctuation Adjustment (FERFA), which accounts for the cost of purchasing electricity from producers paid in foreign currency; the Energy and Petroleum Regulatory Authority (EPRA) levy, Rural Electrification Program (REP) levy, and VAT (Value Added Tax), among others. Combined, these extra costs can significantly reduce the number of actual units you receive for your money.
Moreover, if your average usage stays high for three months in a row, you will remain in the higher band even if your current month’s usage drops—so changes in your tariff status aren’t immediate. KPLC’s system uses this rolling average to prevent constant shifting between bands and to stabilize billing patterns. Still, this often catches consumers off guard, especially if they are unaware of how the banding system works. To manage your electricity costs more effectively, KPLC recommends adopting energy-efficient practices such as using LED bulbs, switching off electronics when not in use, unplugging chargers, avoiding the use of high-energy appliances like water heaters during peak hours, and regularly monitoring your token usage or meter readings to keep track of your consumption.
Consumers are also encouraged to be proactive by checking their tariff classification on their electricity purchase receipts or postpaid bills and contacting KPLC customer service if they suspect a misclassification.
Understanding how KPLC’s billing structure works—especially the link between your average usage, tariff category, and final unit cost—can help you make smarter energy decisions and reduce surprise costs on your electricity bill. With rising fuel prices, a fluctuating Kenyan shilling, and evolving energy needs, staying informed about how these elements affect your power bill is more important than ever.
