A Simple Guide to Kenya’s Commercial Electricity Tariffs in 2025

A few days ago, we talked about how electricity tiers for domestic users work, including the categories, rates, and what households can do to manage their power bills. For commercial electricity tariffs in Kenya, it’s quite a different game.

Running a business in Kenya already comes with its fair share of surprises, from unwarranted taxes to occasional vandalism during protests. However, your power bill shouldn’t be one of them. And let’s be honest: electricity is a major operational cost. Yet many businesses have no idea which KPLC tariff they’re on, or how much they’re paying per unit. You could even be overpaying, and in some cases, cutting your bill by up to 50% is as simple as changing when you use electricity.

This post will guide you through the newly approved 2024/25 and 2025/26 electricity tariffs for Kenyan businesses in plain, practical language. You’ll find updated rates for different consumption levels, real-world examples, and tips you can use to manage your energy costs.

How about we get into it?

Small Commercial (SC) Tariff Breakdown

The Small Commercial electricity tariffs are meant for businesses that don’t use a huge amount of electricity, mostly those on single-phase power connections. So if you run a kiosk, a kinyozi, a salon, or even a small shop with just a fridge, a TV, or a few lights, chances are you fall under this bracket.

There are three main subcategories (SC1, SC2, and SC3), and where you fall depends on how many electricity units (kWh) you use per month.

SC1: 0 to 30 kWh/month

This is the most affordable band, created for businesses with very light usage. If your power consumption stays below 30 kilowatt-hours (kWh) in a month, you’re charged:

• KSh 12.23 per unit in 2024/25
• KSh 12.28 per unit in 2025/26
  

This band is ideal for a basic shop with just a few bulbs and maybe a small appliance like a radio or a small fridge. You don’t pay any extra charges like demand charges; only the cost of electricity you use.

If your shop mostly lights up in the evening and doesn’t run any big appliances, you’re probably in this category. You might not feel a huge difference between years, but it’s still useful to know your rates.

SC2: 31 to 100 kWh/month

Once you go above 30 units but stay under 100 per month, you are in SC2. This is where many small businesses like salons with blow dryers, shops with TVs and fridges, or small workshops fall.

• KSh 16.36/unit in 2024/25
• KSh 16.30/unit in 2025/26
  

If your business runs longer hours or has more than just lighting and one or two appliances, this is probably your current bracket. Again, there’s no demand charge; you’re billed purely on your consumption. And while the price per unit drops slightly next year, over time, those few cents per unit can add up. 

SC3: Above 100 kWh/month

Businesses using over 100 units/month fall under the SC3 electricity tariff category. This usually includes places like large salons with several dryers, cyber cafés, or bakeries with electric ovens. It’s still a “small commercial” tariff, but the cost per unit goes up quite a bit compared to the lower brackets.

• KSh 19.40/unit in 2024/25
• KSh 19.00/unit in 2025/26
  

At this point, your bill can get steep, sometimes even higher than many bigger businesses pay under different tiers. And here’s the kicker: you could be paying more than you need to if you’re not taking advantage of Time-of-Use (TOU) options.

SC TOU (Time of Use)…

TOU is a special rate available to SC3 users who can shift some or most of their power consumption to off-peak hours, usually late at night or very early in the morning. If that’s possible for your business, the savings per KPLC unit price can be dramatic.

• KSh 9.64/unit in 2024/25
• KSh 9.30/unit in 2025/26
  

That’s nearly half the regular SC3 rate.

If you run a business that uses heavy power overnight (like refrigeration, ironing, or baking), or if you can tweak your operating hours slightly, TOU might see your electricity bill dip by nearly 50%. For example, a bakery that shifts its baking from 3 pm to 3 am. It’s all about planning and being smart with your power use.

Bulk Small Commercial Tariff (1,000 to 15,000 kWh/month)

This category isn’t part of SC1–SC3 but is still considered “small commercial” in terms of infrastructure. It’s tailored for businesses that consume a lot of electricity but aren’t quite at the industrial or large commercial level. Typical users include:

• Laundromats with large machines
• Welding shops with heavy-duty equipment
• Medium-sized bakeries or butcheries
  

Here’s how the rate looks:

• KSh 18.50/unit for 2024/25
• KSh 18.00/unit for 2025/26
  

There’s no demand charge, which helps. But when you compare that to what larger businesses pay (sometimes as low as KSh 13 or even KSh 11 per unit), you might wonder why Kenya Power charges you more per unit than a mall or factory. Switching to a commercial (C1) tariff could lower your power bill.

Commercial & Industrial (CI) Tariffs Breakdown

So your business is pulling in more than 15,000 kWh a month (or you’re manufacturing, processing, or running heavy-duty equipment. That’s the cue that you’re officially in CI (Commercial & Industrial) territory. There are several categories, from CI1 to CI6.

Unlike the SC (Small Commercial) setup, CI users get billed two ways:

• Energy charge: what you use in total (per kWh)
• Demand charge: your highest power draw at any one time (per kVA). It’s how hard you hit the grid when you power up.

CI1: Over 15,000 kWh/month

If your business has a three-phase connection and clocks more than 15,000 units a month, then you fall under the CI1 category. This tariff category applies to a small but power-hungry setup like a printing press, a small manufacturing setup, or a large cold storage facility.

In 2024/25, Kenya Power charges KSh 13.74 per unit of electricity. The rate will drop slightly to KSh 13.44 in 2025/26.

You also have the option to benefit from Time-of-Use (TOU) billing. This gives you a lower rate if you use electricity during off-peak hours (typically late at night or early in the morning when demand on the grid is low). Under this plan, your rate drops to KSh 6.87 per unit in 2024/25, and down again to KSh 6.72 per unit in 2025/26.

That’s almost half the price, but there’s a catch….

Suppose you flip on everything at once (say, all your machines or ovens). A demand charge will suffice. This is an extra fee based on your highest level of power usage at any given moment. And for CI1, this fee stings: KSh 1,100 per kilovolt-ampere (kVA), and it remains unchanged across both years. It doesn’t matter if your usage is low overall; if your peak draw is high, you pay.

CI2: Commercial & Industrial 2 (No limit on electricity use)

CI2 is for medium-sized businesses that use a fair amount of electricity but not at extremely high levels. That includes places like bakeries, mid-sized workshops, offices with equipment running most of the day, or small-scale factories.

In 2024/25, the energy charge rate for the C12 electricity tier is KSh 12.44 per unit, which dips a bit to KSh 12.16 per unit in 2025/26.

You can still take advantage of TOU if you shift operations to off-peak hours. In that case, you pay a lower rate of KSh 6.22 per unit in 2024/25, and KSh 6.08 per unit in 2025/26.

Then there’s the demand charge. It’s more forgiving than CI1: KSh 700 per kVA and stays the same across both years. While not as steep, it adds up fast if you’re not strategic about when and how you power up.

CI3: Commercial & Industrial 3 (No limit)

This category applies to large commercial facilities, such as supermarkets, shopping malls, cold storage warehouses, or major distribution centres. Such businesses usually have steady, high electricity demand throughout the day and night, often with multiple lighting systems, refrigeration units, lifts, escalators, or HVAC systems running non-stop.

For this commercial electricity tariff, the unit cost takes a small dip in 2025/26, but it’s the TOU benefit that really matters.

• The energy charge is KSh 11.92 per unit in 2024/25, dropping slightly to KSh 11.68 per unit in 2025/26.
• You can also benefit from Time-of-Use (TOU) rates by scheduling some of your energy use during off-peak hours. In that case, the rate drops to KSh 5.96 per unit in 2024/25, and even lower to KSh 5.84 per unit in 2025/26.
• On top of this, there’s a demand charge. For CI3 users, this charge is KSh 370 per kilovolt-ampere (kVA), and it stays the same for both years.
  

While CI3 users pay more per kWh than heavy industrial users, they benefit from relatively low demand charges compared to CI1 or CI2. If your facility has large equipment that can be scheduled during off-peak hours (like cold storage systems or escalators), it’s worth exploring TOU rates to cut costs.

CI4: Industrial Customers (typically connected at high voltage)

The CI4 tariff applies to industries that use electricity at high voltages, typically through direct connection to the grid’s high-voltage lines. This includes large manufacturing plants, steel fabrication factories, food processing plants, or facilities running heavy motors, furnaces, or production lines.

These businesses require a lot of power, not just in volume, but in load, which means more pressure on infrastructure and often a higher level of technical setup.

Here’s how the numbers stack up for this Kenya electricity tariff:

• The energy charge is KSh 11.68 per unit in 2024/25 and KSh 11.42 per unit in 2025/26. It’s slightly cheaper than CI3, which makes sense considering these users draw from higher voltage lines and tend to have more consistent usage.
• If you use power mostly during off-peak hours, you can take advantage of TOU billing, which brings the cost down to KSh 5.84 per unit in 2024/25 and KSh 5.71 per unit in 2025/26. Not bad, especially if your plant hums overnight while the rest of the country sleeps.
• The demand charge for this category is KSh 300 per kVA, which is lower than CI1 and CI2, but still significant if your facility has unpredictable or spiky power demand.
  

Because these businesses operate at scale, even a small difference in unit price or demand cost can translate into major savings. If your plant runs overnight shifts or 24/7 operations, you’re in a good position to benefit from TOU rates. But if you’re running everything all at once without monitoring demand peaks, your bill could quickly balloon due to high kVA charges.

CI5: Extra-Large Industrial Users

Are you running multiple production lines? Processing tons of goods every day? Warehousing at a massive scale? Welcome to CI5.This tariff band is appropriate for massive industrial operations, Kenya’s industrial heavy hitters chewing through electricity 24/7.

• The energy charge is KSh 11.40 per unit in 2024/25, dropping slightly to KSh 11.16 per unit in 2025/26. Shaving off just 20 or 30 cents per KPLC unit may not sound like much, until you realize it adds up to tens of thousands when your meters spin like turbines.
• The Time-of-Use (TOU) rate slashes your cost to KSh 5.70 per unit in 2024/25, and KSh 5.58 in 2025/26. That’s more than 50% off the daytime rate, which is a serious opportunity for savings if your facility runs overnight shifts or can stagger power-intensive processes.
• The demand charge stays at KSh 300 per kilovolt-ampere (kVA). That’s lower than what smaller commercial categories pay, but still significant if your equipment draws a lot of power all at once.
  

This is a commercial electricity category where energy efficiency matters; you don’t want those demand charges sneaking up on you, after all. So, space out your equipment start-up, use energy-efficient motors, and avoid firing up everything at once unless you have to.

CI6: Ultra-Large Commercial and Industrial Users/Special Economic Zones

The CI6 category is as big as it gets. It’s built for Kenya’s giants that rely on continuous, high-capacity electricity, from steel mills, cement factories, to large data centers. It also includes Special Economic Zones (SEZs), where power pricing is often used as an incentive for investment.

Here’s how the rates are structured for this ultra-heavy-use group:

• The energy charge is the lowest of all the categories, set at a flat KSh 10.00 per unit in 2024/25 and 2025/26. This rate reflects the sheer volume of electricity these businesses consume; the more you use, the less you pay per unit.
• Interestingly, the Time-of-Use (TOU) rate for both years is KSh 7.42 per unit. This is higher than the TOU rates for smaller categories, but that’s because the regular rate is already so low. In many cases, switching to TOU might not offer much of a discount for CI6 users.
• On the plus side, the demand charge is the lowest across the board, dropping to KSh 200 per kVA. For a business drawing massive power loads, this reduced rate can make a huge difference in monthly bills.
  

If you’re in CI6, your focus shouldn’t be on trimming usage; you already have bulk pricing. Your real win is in managing your peak load.

What Exactly Are Demand Charges?

When you look at your power bill, your eyes probably go straight to how many units (kWh) you used. That’s your energy charge. But that’s only half the story for many businesses on commercial or industrial tariffs. There’s another cost hiding in plain sight: the demand charge. This is an extra fee based on the highest amount of electricity your business pulls at once.

Think of it like this:

Energy charge = The total electricity you used throughout the month (measured in kWh)

Demand charge = The highest amount of electricity you pulled at any one moment (measured in kVA in Kenya)

Even if that spike lasts just a few minutes, Kenya Power logs and bills it as a demand charge. Surprised? You’re not alone.

A simple analogy:

Imagine your electricity supply is a giant water pipe.

• Your water bill charges you for the total liters you used (that’s like your energy charge).
• But if you suddenly turn on all the taps, the shower, and the washing machine at once, you’re demanding a lot of water at one time. That “burst” is like demand.
  

Even if that burst lasts 10 minutes, your plumbing system must be capable enough to handle it. It’s the same with electricity. Kenya Power has to build and maintain capable infrastructure, like transformers, lines, and substations, to handle the highest level of demand commercial facilities might place on the grid. That’s why they charge for it.

Real-world example

Let’s say you run a medium-sized factory using an average of 50,000 kWh of electricity monthly. That’s your energy charge. But then, one morning, at 8:00 AM, your team powers up all the machines (think motors, compressors, cooling systems…etc) at once for 10 minutes.

Your demand spikes to 60 kVA, and Kenya Power logs it as your peak usage for the month. Supposing your commercial electricity tariff stipulates a demand charge rate of KSh 700/kVA, your bill now includes:

60 × 700 = KSh 42,000 in demand charges on top of your regular energy costs.

For many businesses, this is the part of the bill that feels unexpected or unfair, especially when your average use might seem modest.

Why demand charges matter

Sudden spikes in electricity use equate to bigger bills.

The good news? You can do something about it:

• Spread out equipment startup times. Don’t power everything on at once. Instead, turn machines on in stages over several minutes.
• Install batteries or energy storage. These can help smooth out power usage by providing backup during heavy load times.
• Monitor your usage. Track when your peak demand happens and adjust your schedule accordingly. Many modern meters and smart systems can help with this.

Final Word

Many businesses in Kenya are paying more for electricity than they need to, often without realizing it. That’s because the Kenya commercial electricity tariffs aren’t a one-size-fits-all rate. It’s a layered system with categories, time-of-use options, and demand charges that can either save you money or quietly eat into your profits.

Small moves make a big difference, remember. For example, switching from SC3 to SC TOU, or moving from a Bulk SC plan to a C1 connection, could save you thousands of shillings a month. That’s money better spent on more stock, better tools, or even another hire, not lost to an avoidable power bill.

So here’s the call:

• Check your meter
• Read your latest electricity bill
• Know which electricity tariff your business falls under
• Ask questions if anything looks off

Because when it comes to power bills in Kenya, knowledge is power and, more importantly, better profits.

Ezekiel Maina

Ezekiel Maina is the brains behind ContentGenics, where he pairs creativity and strategy to craft B2B and B2C content that real people love to read. He has written for brands like House Digest, iFoundries, Harmony Home Medical, Postaga, and BeamJobs, and covered topics like home improvement, real estate, freelancing, digital marketing, career growth, food & travel, automotive, durable medical equipment (DME), and Cannabis. By day, he’s crafting content, catching up with clients from his home office, lost in a good book, or occasionally chasing nature and greenery in another county. By late evening, he’s typically deep in a documentary rabbit hole on Netflix or YouTube.