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Originally published by Kenyanstop
September 23, 2025
2h ago
Explainer: 7 Taxes and Levies on Your Electricity Bill

These charges apply to both pre-pay and post-pay customers, and amounts charged often vary monthly...
✨ Key Highlights
Kenyans purchasing electricity units often receive significantly fewer units than expected due to various taxes and levies. For instance, a Ksh500 purchase might yield only Ksh305 worth of units, with the remaining Ksh195 attributed to seven different charges.
- Kenya Power applies seven taxes and levies to all electricity purchases, both pre-pay and post-pay.
- The charges include a constant Value Added Tax (VAT) of 16 percent and variable charges like Fuel Cost Charge (FCC) and Foreign Exchange Rate Fluctuation Adjustment (FERFA).
- Other levies include the ERC/EPRA Levy (3 cents per unit), Water Resources Management Authority (WARMA) levy, Rural Electrification Programme (REP) Levy (five percent of unit costs), and an Inflation Adjustment.
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