When Rosemary Oduor, General Manager of Commercial Services and Sales of Kenya Power and Lighting Company (KPLC) appeared on The Big Conversation ShowCitizen TV, Nairobi on Thursday night, she finally put a spotlight on a problem that has been buzzing across social media: two customers can pay the same amount for a token and end up with different kilowatt‑hour units. The root cause? A three‑tier tariff system that classifies households by their average monthly consumption, not by the amount they spend on any given day.
KPLC’s tariff framework, launched in 2023, groups domestic users into Domestic Customer One (DC1), Domestic Customer Two (DC2) and Domestic Customer Three (DC3). The categorisation hinges on the average electricity drawn over the previous three billing cycles, a safeguard designed to smooth out one‑off spikes or sudden cuts in usage.
Because the rates are set before VAT and the fuel‑energy surcharge, the final amount a consumer sees on a token receipt can look higher, especially for those in DC3. The varying unit‑per‑shilling ratio is what fuels the confusion.
The crux is that KPLC calculates the per‑unit price based on the tariff band, not the cash value alone. If two neighbours each buy a Sh 500 token, the one in DC1 will receive roughly 40 units, while the DC3 resident may only get about 25 units. Oduor emphasized that the three‑month averaging system prevents a household from being slammed into a higher bracket after a single month of heavy cooking or a festive power‑drain.
“We look at the trend, not the flash‑in‑the‑pan,” she told the audience. “If your average stays under 30 units, you stay on the Lifeline Tariff, even if one month you spend a little more.”
The explanation sparked a flurry of comments on X (formerly Twitter). One user wrote, “They should notify us when we’re about to slip into a higher band – a simple pop‑up on the token receipt would do.” Another suggested a mobile‑app dashboard that shows real‑time average usage and predicts when a tariff shift is imminent.
Consumer advocacy groups, such as the Kenya Consumer Federation, have long urged KPLC to publish an easy‑to‑read chart of the three tiers. The federation’s spokesperson, Abdul Hassan, said, “Transparency builds trust. If people can see where they stand, they’ll adjust habits rather than feel penalised.”
KPLC didn’t just lay out the problem; it offered a handful of low‑cost habits to help households keep their average below the 30‑unit threshold.
These steps, while simple, can shave a few units off a monthly bill, keeping more families eligible for the lifeline rate.
Oduor hinted that KPLC is reviewing the possibility of a digital notification system. “We’re piloting SMS alerts for customers whose three‑month average is within five units of the next tier,” she said. If successful, this could become a nation‑wide feature, easing the anxiety that currently fuels online backlash.
Meanwhile, the regulator – the Energy and Petroleum Regulatory Authority (EPRA) – is monitoring the public sentiment. An EPRA spokesperson, Dr. Grace Njeri, remarked, “Tariff transparency is a priority. We expect KPLC to continuously improve communication channels with consumers.”
Overall, the three‑month averaging rule is designed to balance fairness with financial sustainability for the utility. Whether the upcoming digital tools will satisfy the public remains to be seen, but the dialogue is a positive sign that Kenya’s electricity market is moving toward greater openness.
KPLC looks at the total units you used over the past three months and divides by three to set your tariff band. This means a single month of high usage won’t instantly push you into a higher‑price category; only sustained changes alter the rate you pay per unit.
Once your three‑month average exceeds 30 units, KPLC reclassifies you to DC2. Your token purchases will then be calculated at roughly Ksh 16.45‑16.58 per unit, so you’ll receive fewer kilowatt‑hours for the same amount of money.
At present, KPLC prints the tariff band on your monthly bill, but not on individual token receipts. The company is testing an SMS alert that will notify customers when they’re close to moving up a tier.
Yes. The rates quoted by KPLC (12.23, 16.45, 19.02 Ksh per unit) are exclusive of VAT, fuel‑energy adjustments and other statutory levies. Adding those can push the effective cost per unit up by 5‑10 %, depending on the current tax rates.
The Lifeline Tariff is part of Kenya’s social protection agenda. It’s funded through cross‑subsidies within KPLC’s overall revenue model, meaning higher‑usage customers indirectly support lower‑usage households.
Anurag Narayan Rai
Reading through the explanation about Kenya Power's three‑tier system feels like opening a textbook on electricity economics, yet the real‑world impact hits home for anyone who has ever bought a Sh 500 token and wondered why the numbers don’t match up. The three‑month averaging rule, as Oduor described, smooths out occasional spikes, which is smart because a single month of heavy cooking shouldn’t permanently push a family into a higher bracket. It also means that households need to think about their consumption habits over a season, not just at the end of the month, which can encourage more sustainable behavior. For low‑income families, staying under the 30‑unit threshold keeps the Lifeline Tariff alive, and that subsidy can be the difference between having light for study time and being in the dark. On the other hand, the mid‑range DC2 band still offers a reasonable rate for families that have grown beyond the bare minimum but haven’t yet reached the high‑usage levels. The high‑usage DC3 tier, while more expensive, reflects the reality that larger homes or businesses need to pay their fair share, and the cross‑subsidy model keeps the system balanced. One thing that stands out is the lack of real‑time feedback; people only find out they’ve shifted bands after the next bill, which can feel unfair. The proposed SMS alerts could close that gap, giving households a heads‑up before they make a big purchase or invite extra guests. Another point worth noting is that taxes and levies can add another 5‑10 % on top of the base rates, so the headline figures Oduor mentioned are just the starting point. The recommendation to replace incandescent bulbs with LEDs is a simple win, cutting down on waste while also preserving those precious units. Unplugging idle devices may sound obvious, but the cumulative effect across a neighbourhood can be substantial, especially when many households are clustered in the same tariff band. Scheduling heavy appliances during off‑peak hours can also help, as the utility often provides lower rates for off‑peak load, though this article focused on the three‑tier structure rather than time‑of‑use pricing. The suggestion to keep fridges well‑maintained is a practical tip that many overlook; a dirty coil can consume up to 30 % more power. Finally, leveraging natural light isn’t just an aesthetic choice-it’s a budget‑friendly strategy that aligns perfectly with the Lifeline Tariff’s goals. In summary, the three‑tier system aims to be fair by looking at trends, not anomalies, and the upcoming digital tools could make it even more transparent, benefiting both the utility and the consumer.