Isaac Ndereva, Executive Director of the Electricity Consumers Society of Kenya (ELCOS), has explained that Kenyan electricity consumers could see a reduction in power costs in the coming months as the current tariff review cycle approaches its expiry in June 2026.
His remarks come amid growing public concern over fluctuating token units and rising monthly electricity bills across different consumption categories.
Speaking in an interview, Ndereva argued that the increase in electricity costs is driven by complex billing structures, not by a base tariff hike.
“And of course, we have also done our mathematics as a society. And we’ve seen that power is not supposed to go up because of various reasons. It’s supposed to come down by five shillings. But definitely, you’ll hear rumours that, oh, power has been increased. They normally start by saying power has gone up by 4.4,” Said Ndereva.
According to Ndereva, the current tariff structure approved in 2023 is expected to remain in effect until June 2026, after which a new review may take effect. He suggested that, based on calculations and broader economic conditions, electricity prices could potentially decline rather than increase.
He linked this expectation to changes in fuel costs, forex stability, and regulatory adjustments that influence overall power pricing. However, he emphasized that the outcome would depend on decisions made by the Energy and Petroleum Regulatory Authority.
Also Read: Kenyans to Pay More for Electricity After EPRA Tariff Adjustment
Complex Tariff Structure Behind Electricity Costs
Ndereva explained that Kenya’s electricity pricing system comprises multiple components that collectively determine the final cost per unit.
These include the base energy charge, fuel cost adjustments, foreign exchange fluctuations, inflation adjustments, and various statutory levies.
According to him, customers mistake pass-through charges for actual tariff increases. Costs such as fuel energy charges, he explained, are collected on behalf of generators and reflect the cost of producing electricity using diesel, gas, or heavy fuel oil.
Foreign exchange adjustments are also applied to cushion power producers from currency fluctuations, especially where contracts are denominated in US dollars.
Inflation adjustments and regulatory levies are also added periodically, contributing to monthly variations in token prices even when the base tariff remains unchanged.
Also Read: Kenya Power Explains ‘Token Bypass’ Error on Customer Interface Units (CIUs)
Why Consumers Fall Under Different Tariff Categories
Ndereva further explained that electricity consumers in Kenya are grouped into different categories based on monthly consumption patterns.
These include DC30, DC60, and DC100, which determine how much a household pays per unit of electricity.
He said customers who consistently consume more than 100 kilowatt-hours per month are placed in the DC100 category, which incurs higher per-unit costs than lower consumption brackets.
“We normally have 15 tariffs. But all these tariffs, Kenyans only happen to get about three of them. The tariff you are in is over 100. It’s called DC100, a domestic consumer tariff where you consume more than 100 kilowatt hours per month. There are those who consume between 30 to 60 kilowatt hours per month. Those are called DC60. And then DC30, those who consume between zero to 30 kilowatt hours per month,” added Ndereva.
This classification is reviewed every three months based on usage trends.
Households in urban areas, especially those using appliances such as iron boxes, fridges, and water heaters, often fall into higher consumption brackets. As a result, they tend to have higher electricity bills and more pronounced fluctuations in token units than low-consumption rural households.
