Kenya Power and Lighting Company (KPLC) has today, December 19, 2025, addressed why power bills never remain constant despite constant electricity usage.
KPLC’s manager, Richard Wida, explained why electricity bills continue to rise even when household usage remains the same, citing global fuel prices and foreign exchange rates
Wida explained the invisible forces behind electricity pricing, from global fuel costs to forex exchange rates. “These variables aren’t just numbers; they shape what you pay,” he explained.
As part of KPLC’s ongoing Customer Education Series, aimed at promoting transparency amid persistent complaints about high bills, Wida explains that electricity tariffs in Kenya consist of a fixed base rate approved by the Energy and Petroleum Regulatory Authority (EPRA) and variable pass-through charges that adjust monthly.
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According to Wida, the two main variables are the Fuel Energy Cost Charge (FCC) and the Foreign Exchange Fluctuation Adjustment (FERFA).
The Fuel Energy Cost Charge
It covers the cost of thermal power generation, which supplements cheaper renewable sources like hydro and geothermal when demand is high, or water levels are low.
Thermal plants usually run on diesel or heavy fuel oil, leading to the rising global oil prices, which directly increase this charge.
The Foreign Exchange Fluctuation Adjustment
FERFA accounts for currency fluctuations, as many power purchase agreements with independent producers and infrastructure loans are denominated in foreign currencies.
“These are uncontrollable factors influenced by global markets. EPRA cannot cap them because they reflect real-time costs in power generation and imports,” Wida explained.
He stressed that KPLC and EPRA publish these adjustments monthly in gazette notices for transparency, and that citizens should be aware that a weaker Kenyan shilling means that higher costs are passed on to consumers.
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The KPLC educational explainer comes at a time when most Kenyans are feeling the heat of high electricity bills despite maintaining a constant usage rate, and MPs are calling for further increases to offset rural electrification levies.
Throughout 2025, EPRA announced several price hikes, like in October, when FCC rose to KSh 3.69 per kWh with FERFA at KSh 1.54.
November saw further increases that led to the addition of nearly KSh 4.78 per unit overall.
The effect of these time-to-time fluctuations has left households and businesses reeling, with customer complaints surging.
Social media is flooded with stories of shockingly high bills, with some reporting charges exceeding KSh 200,000 for modest homes, while others note bills jumping despite consistent or reduced usage, and businesses reporting similar encounters where electricity bills exceed 40% of sales.
In December 2025, EPRA reported lower FCC at around KSh 3.42 and FERFA at KSh 0.68, marking the lowest prices this year.
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