Everything You Need To Know About Kenya Power Tiered Tariff System

Electricity bills in Kenya have a way of catching people off guard, and not in a good way. It starts innocently. You top up KSh 1,000 onto your token meter, expecting the same number of units you got last month. But this time, the units are noticeably fewer. Or your postpaid bill lands in your inbox, hundreds of shillings higher, yet you haven’t bought a new appliance. What changed? In many cases, the culprit is the Kenya Power tiered tariff system.

This system is designed to charge different rates depending on how much electricity you use within a billing cycle. It applies to both domestic electricity tariffs in Kenya and commercial KPLC tariffs, under the regulation of the Energy and Petroleum Regulatory Authority (EPRA).

In this guide, we’ll break down EPRA electricity tariffs, show you how to know your KPLC tariff, explain how to change KPLC tariffs if you’re on the wrong one, and reveal why two people paying the same amount can walk away with completely different unit allocations. We’ll also unpack the new Kenya Power tariffs for 2025, the factors behind the recent Kenya Power tariff increase, and share practical tips to lower your bill without giving up comfort or productivity.

What Is a Tariff in Power Systems?

Think of Kenya Power’s tiered tariff system as a structured price list for electricity. It’s not a single rate for everyone; instead, it’s a set of rates tied to specific categories of consumers and their consumption patterns.

In simple terms:

• A tariff is the amount you pay per unit (measured in kilowatt-hours or kWh) of electricity you consume
• A tiered tariff means your rate changes based on how much electricity you use in a month
  

Kenya uses a tiered electricity tariff system for two main reasons:

1. Affordability for low-income users. By offering lower rates to households and small businesses that consume less electricity, the system ensures that essential lighting and basic appliance use remain affordable.
2. Incentivizing energy efficiency. Higher consumption attracts higher rates, encouraging users to reduce waste and spread out energy-intensive tasks.
   

This is why you’ll find different electricity tariff categories in Kenya, like Domestic 1, 2, and 3 for households, or SC and CI categories for businesses. Each has its own Kenya Power cost per kWh, and your category can change automatically based on your consumption history.

It’s also worth noting that tariffs don’t just cover the cost of generating electricity. They also factor in:

• Transmission and distribution costs (moving power from plants to your home or business)
• Maintenance of infrastructure like transformers and substations
• Taxes and levies imposed by the government
  

This is why many people complain that Kenya Power is so expensive. The per-unit cost isn’t just about the raw electricity, but also the cost of keeping the lights on nationwide.

Overview of the EPRA Electricity Tariffs in Kenya

The EPRA electricity tariffs are the official rates approved by the Energy and Petroleum Regulatory Authority. While Kenya Power (KPLC) is the company you pay, they don’t actually decide the rates. Instead, EPRA reviews and sets tariffs after considering a host of economic and technical factors.

Here’s how it works:

• EPRA looks at the cost of generating electricity, which varies depending on the mix of sources, including hydro and geothermal.
• They factor in operational costs, inflation, and exchange rate fluctuations.
• They project infrastructure upgrades, like expanding substations or improving rural electrification.
• They then approve rates for different categories of consumers.
  

The current rates for KPLC tariffs 2025 are outlined in an official electricity tariffs PDF, which you can also find online by Googling “KPLC tariffs 2025 PDF download.”

Why do tariffs change?
The biggest drivers are:

• Fuel cost charge (FCC): This fluctuates monthly depending on the price of fuel for thermal power plants.
• Forex adjustment: Changes in exchange rates affect the cost of importing fuel or equipment.
• Inflation: As general prices rise, so do the costs of maintaining the grid.
  

When EPRA approves an increase (often labeled as a Kenya Power tariff increase), it’s usually because of these economic pressures, although public perception is that KPLC is simply “charging more.” In reality, the rates are adjusted to ensure the utility can cover costs and maintain service reliability.

Domestic Electricity Tariffs in Kenya

The electricity tariffs for domestic consumers in Kenya are split into three main categories based on monthly consumption:

1. Domestic 1 (DC1-L): Lifeline Customers

• Consumption: Less than 30 units per month.
• Kenya Power charges per unit: KSh 12.23 in 2025 (before taxes).
  

This is the cheapest category, designed for low-income households or individuals living alone with minimal appliances. Examples include a rural home with a couple of LED bulbs, a radio, and phone charging, or a bedsitter in town with a single energy-efficient bulb and no heavy appliances.

2. Domestic 2 (DC2-O): Ordinary Customers

• Consumption: 30–100 units per month.
• Kenya electricity cost per kWh 2025: KSh 16.45 (before taxes).
  

This is where most urban households fall, especially if they have a fridge, a TV, a few lights, and occasional use of appliances like a blender or microwave. The jump from Lifeline to Ordinary is steep; over 34% higher per unit, which is why careful monitoring is important.

3. Domestic 3 (DC3-O): High-Use Customers

• Consumption: Above 100 units per month.
• How much does Kenya Power charge per unit for this category? KSh 19.08 (before taxes).
  

This bracket covers larger families and homes with heavy appliances, such as electric ovens, washing machines, pressure showers, or multiple fridges.

The danger here is that once you cross 100 units, all units for that month are billed at the higher rate, not just the ones above 100. This is why you may suddenly see fewer units for the same token purchase.

Commercial KPLC Tariffs in 2025

While domestic electricity pricing is based purely on how many units you use each month, commercial tariffs are a little more complex. Businesses,  from small kiosks to massive factories, fall into different KPLC tariffs depending on their energy needs, type of connection, and whether they can take advantage of Time-of-Use (TOU) pricing.

The power tariffs in Kenya for commercial users are generally divided into Small Commercial (SC), Bulk Small Commercial, and Commercial & Industrial (CI) categories.

1. Small Commercial (SC1, SC2, SC3)

These are for businesses with relatively low consumption, often on single-phase power:

• SC1 (0–30 kWh/month): KSh 12.28 per unit in 2025
• SC2 (31–100 kWh/month): KSh 16.30 per unit in 2025 
• SC3 (Above 100 kWh/month): KSh 19.00 per unit in 2025
  

SC3 TOU (Time-of-Use) rates drop during off-peak hours, down to KSh 9.64 per unit. For businesses like bakeries or refrigeration services that can run heavy equipment at night, this can cut bills by almost half.

2. Bulk Small Commercial

For businesses using between 1,000 and 15,000 kWh/month but still classified as “small” in infrastructure terms, the KPLC price per unit is KSh 18.50 for 2024/25 and 18.00 for 2025/26.  Typical users include laundromats, welding workshops, and medium-sized bakeries.

At this point, your per-unit cost is higher than some larger businesses pay, which is why some bulk SC users opt to upgrade to a CI category to enjoy lower rates.

3. Commercial & Industrial (CI1 to CI6)

The electricity tariffs in Kenya for CI users depend on consumption volume and connection type (low, medium, or high voltage). Also, expect to pay demand charges, an extra cost based on the highest power draw (in kVA) during the month.

Examples from the 2025 tariff schedule:

• CI1 (Over 15,000 kWh/month): KSh 13.74 per unit or KSh 6.87 TOU. Demand charge: KSh 1,100 per kVA.
• CI3 (Large facilities like supermarkets): KSh 11.92 per unit, KSh 5.96 TOU. Demand charge: KSh 370 per kVA.
• CI6 (Ultra-large industries and special economic zones): KSh 10.00 per unit flat, KSh 7.42 TOU, and a low demand charge of KSh 200 per kVA.
  

For high-consumption businesses, a well-managed TOU plan can mean massive savings.

How Many kWh is 1 Unit in Kenya?

This question, “Why do I get fewer units when I buy electricity in Kenya?” is one of the most common complaints on social media.

The answer usually comes down to tariff changes. If your monthly consumption pushes you into a higher category, the rate per unit increases. That means the same KSh 500 or KSh 1,000 will buy fewer units.

Example:

• In Domestic 1, KSh 500 (excluding levies and taxes) buys ~40 units at KSh 12.23 each
• In Domestic 3, that same amount only gets ~26 units at KSh 19.08 each
  

Understanding your category in the Kenya Power tiered tariff system and keeping track of your monthly usage can prevent these unpleasant surprises.

How to Know Your KPLC Tariff

How do I know my KPLC tariff, you ask? The answer depends on whether you’re a prepaid or postpaid customer.

For prepaid meter users:

• Check the SMS you receive after buying tokens. Look at the amount before taxes and divide it by the units received; this should give your Kenya Power cost per kWh.
• Compare the number to the official KPLC tariffs 2025 table or the figures provided above to identify your electricity tier.
  

For example:
If you spent KSh 800 (before taxes) and got 48.51 units:
800 ÷ 48.51 = KSh 16.49 per unit, which falls under Domestic 2 in 2025.

You can also use the *977# USSD code:

1. Dial *977#
2. Select “Prepaid Services”
3. Choose “Token Details” and select your meter number
4. Enter a recent M-Pesa reference number to get details of your last purchase
   

For postpaid customers:

• Visit selfservice.kplc.co.ke and check your latest bill for units consumed
• Or dial *977#, select “Postpaid Services” > “My Bill,” and pay the KSh 10 SMS fee for details
  

Knowing your category is the first step in managing your electricity costs, especially if you want to avoid surprises synonymous with Kenya Power token tariffs.

How to Change KPLC Tariffs

Switching categories isn’t always as simple as filling out a form, unless you’re changing from a commercial to a domestic connection.

Here’s how it works:

• Domestic tiers (DC1, DC2, DC3): Your category changes automatically based on your average monthly consumption over a few months. To move to a lower tier, consistently use less electricity for at least 3 months.
• Commercial to domestic: This requires a formal request at a Kenya Power office, followed by a site inspection to verify the connection type.
• Upgrading commercial categories: For businesses moving from SC to CI tariffs, Kenya Power evaluates your infrastructure and load requirements before approving the change.
  

PS: If you’re a domestic consumer wondering how to change KPLC tariffs because your bill has skyrocketed, it’s often more about usage habits than paperwork.

Why Is Kenya Power So Expensive?

Many of us feel the pinch every time we pay for tokens or receive a monthly bill. But why is Kenya Power so expensive?

Here’s the breakdown:

1. Taxes and levies: VAT at 16%, plus fuel, forex, and inflation adjustments, can add 20–25% to your bill.
2. Generation costs: Thermal power (diesel) is more expensive than hydro or geothermal, and when droughts reduce hydro capacity, diesel costs push tariffs up.
3. Grid maintenance: Keeping thousands of kilometers of transmission lines and hundreds of substations running is costly.
4. Exchange rates: A weak shilling makes imported fuel and equipment more expensive.
   

Even if the base Kenya Power cost per kWh is low, the add-ons make the final price feel punishing.

Why Do I Get Less Units When I Buy Electricity in Kenya?

This question, “Why do I get fewer units when I buy electricity in Kenya?” is one of the most common complaints on social media.

The answer usually comes down to tariff changes. If your monthly consumption pushes you into a higher category, the rate per unit increases. That means the same KSh 500 or KSh 1,000 will buy fewer units.

Example:

• In Domestic 1, KSh 500 (before taxes) buys ~40 units at KSh 12.23 each.
• In Domestic 3, that same amount only gets ~26 units at KSh 19.08 each.
  

Understanding your category in the Kenya Power tiered tariff system and keeping track of your monthly usage can prevent these unpleasant surprises.

New Kenya Power Tariffs in 2025

The new Kenya Power tariffs for 2025, approved by EPRA, took effect at the start of the financial year and will run through 2026. While some categories have seen small reductions, others remain unchanged from 2024, especially for domestic users.

Key highlights from the KPLC tariffs 2025 schedule:

• Domestic tariffs: No major price cuts. Domestic 1 remains at KSh 12.23 per unit, Domestic 2 at KSh 16.45, and Domestic 3 at KSh 19.08 (before taxes).
• Small Commercial: Potential marginal drops in SC3 rates (from KSh 19.40 in 2024/25 to KSh 19.00 in 2025/26).
• Bulk Small Commercial: Expected to reduce from KSh 18.50 to KSh 18.00 per unit.
• Commercial & Industrial: Some categories enjoy small reductions. For example, the drop from KSh 13.74 to KSh 13.44 per unit for the C1 category. TOU discounts remain attractive, with some rates as low as KSh 5.58 per kWh during off-peak hours for heavy industries.
  

For those who want the complete official breakdown, sites like Scribbr have the KPLC tariffs 2025 PDF downloads available for registered users. 

The takeaway? While there’s no dramatic drop in Kenya electricity cost per kWh in 2025, businesses with flexible operating hours can still slash costs significantly by taking advantage of TOU pricing.

Practical Tips to Reduce Your Electricity Bill

Understanding the electricity tariff categories in Kenya is just step one. Step two is actively managing your consumption so you stay in a lower bracket or at least get more value for every shilling spent.

1. Use Time-of-Use (TOU) to your advantage: If your business can run heavy processes at night or early morning, TOU rates can cut your Kenya Power cost per kWh by up to 50%. For example, a bakery baking at 3 AM instead of 3 PM saves almost half per unit.

2. Switch to energy-efficient appliances: Old fridges, incandescent bulbs, and outdated motors eat more electricity. Replacing them with energy-efficient alternatives lowers monthly usage and may shift you to a cheaper category.

3. Monitor and track usage: Use your prepaid token SMS or postpaid bill data to track patterns. If you’re edging close to the next tier, adjust your usage for the rest of the month.

4. Spread out heavy appliance usage: Avoid running all high-consumption devices at once. This helps reduce your peak demand, which is especially important for commercial users facing high demand charges.

5. Switch to solar where possible: Even partial solar integration (like water heating or lighting) can help you avoid crossing into a higher bracket.

Final Thoughts

Whether you’re paying Kenya Power token tariffs at home or commercial KPLC tariffs in a business, the rules of the game are the same: know your category, track your consumption, and use the system to your advantage.

From above, the Kenya Power tiered tariff system is more than a bureaucratic footnote. It’s the difference between paying KSh 12.23 or KSh 19.08 per unit. That’s thousands of shillings you either save… or lose.

In 2025, with the new Kenya Power tariffs in place, you can’t afford to be caught off guard. Grab a KPLC tariffs 2025 PDF from a trusted site (you know them 🙂), monitor your bill closely, and make small but strategic shifts in your usage. The power is in your hands, literally.

Kenya Power tiered tariff system FAQs

Q1: How do I know my KPLC bill?

Use the *977# USSD code or visit selfservice.kplc.co.ke to check your bill. For postpaid users, you’ll see total units consumed and amount due; for prepaid users, you can see recent token purchases.

Q2: How many kWh is 1 unit in Kenya?

1 unit equals 1 kilowatt-hour (kWh). This is the amount of electricity consumed when a 1,000-watt appliance runs for 1 hour.

Q3: How much does Kenya Power charge per kWh?

In 2025:

• Domestic 1: KSh 12.23 per kWh
• Domestic 2: KSh 16.45 per kWh
• Domestic 3: KSh 19.08 per kWh
  

Q4: What is a tariff in a power system?

It’s the pricing structure used to determine how much you pay per kWh, often based on monthly consumption brackets.

Q5: Why do I get fewer units for the same amount?

Your tariff category may have changed to a higher bracket based on monthly usage, increasing your KPLC per-unit cost.

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.