Voice Visuals

TOM: Electricity has always been ● Graphics of a bulb lighting

a complex commodity in Kenya.
The bill doesn’t always show up
with a single figure on it. It comes
in the form of a text message that
contains a breakdown of 8 costs.
Most of us get lost in the jargon.
What is a token amount? What are
Fuel costs? Or forex adjustment
costs?
Let’s breakdown the components
that make up your electricity bill.
● Screenshot of a token message
and Twitter posts.
https://archive.is/SW0Wl
https://archive.is/gFgA2
https://archive.is/ZHIOG
https://archive.is/hiucQ
● Show graphics of rhetorical
questions when I am asking the
questions.

TOM: Before 2009, all Kenyans ● A KPLC meter-reader taking

used the post-paid meter. This down notes from a meter.
meant that someone came to your https://youtu.be/JdgYPoHrj1c
home, read your meter and KPLC
would send a bill at the end of the
month. Most payments were made
at KPLC offices countrywide. But
in 2013, the pre-paid meter was
introduced. These mobile-like ● Image of a pre-paid meter and
devices allowed Kenyans to person buying units.
purchase any quantity of electricity
from KPLC using third-party
vendors such as MPESA and Airtel
Money: What many now refer to as
tokens.

TOM: This meant more The AUC video of Jerotich Seii

transparency was achieved and protesting in 2018. https://youtu.be/-
inconsistencies were now more IfwgBwT23E
apparent. Thus opening the gates to
scrutiny.

TOM: The first of 8 components of ENERGY CHARGE bullet point as

the tariff is the ENERGY the first frame after I mention it.
CHARGE or TOKEN AMOUNT.
This is the cost of electricity
purchased in units or KWh. It goes
to KPLC for supplying the energy
you consume in your household.
It’s noteworthy that the cost of 1-
unit varies according to your
average monthly consumption.
ISAAC NDEREVA explaining the
categories.

ISAAC-You realize there are two 00002

kinds of tariffs of domestic. There is
one which if you consume more than 00:26-1:11
100KW/H you will be charged at
25Ksh, there is another one if you’re
consuming less you will be charged at
around 19Ksh so if you take 1000 and
divide for both you will realize they
give you different. But what informs
on which tariff you need to be in. It is
basically, they come and take your
three months consumptions. If you
have exceeded 100KW/H and you
had been consuming less but now you
have been consuming for the past 3
months more than 100 then you’re
taken to the more expensive tariff.
You’re in the more expensive tariff
and then you have consumed less in
the consecutive three months then
you’re taken to the lower one.
TOM: Presently Domestic Lifeline
Consumers purchased 1-unit for
Sh7.70 whereas Domestic Ordinary
Consumers paid Sh12.60 for the
same amount.

Secondly, The Fuel Energy Charge. Graphic to list Fuel Energy Charge
right under TOKEN AMOUNT.
(The idea behind this is to show
how every component adds up to
Fuel cost or fuel charge is the finally result in the COST.)
amount paid for fuel used in ● Show an image of THERMAL
thermal generators. GENERATORS.
To a Domestic Lifeline Consumer,
fuel charges alone take up 35% of
the costs. This amount goes to the
Independent Power Producers or
IPPs.

Isaac Ndereva explains…

} & 001 10:38.

{ISAAC NDEREVA FOOTAGE
ISAAC: That fuel cost is supposed to 001 3:20-3:44}
be the amount of fuel that was used to
generate power using thermals. Now
it is supposed to be varying because if
we had more thermals this month
then the cost should be higher when
we have less this month then it should
be lower. The challenge is that, that is
not the trend. We sometimes have a
standard or a flat rate.

ISAAC: That is supposed to be paid

to these eight thermal generators and
then you also load for these five that
are independent they’re not owned by
KenGen they have been contracted on ISAAC NDEREVA 00001
foreign currency so the third
component you will get there is called 10:38-10:53
Forex.
TOM: Thirdly, Forex Adjustment ● A graphic adding the FX
Charges. This amount is because of charges to the list.
currency costs incurred by KPLC
anywhere along the value chain.
For example, the KPLC does all
payments to Independent Power
Producers in Dollars and Euros.
The consumer incurs all the losses
during conversion. And now with
the shilling weakening, these prices
are steadily rising.

In other words, the more the

shilling loses value, the higher the
Forex Adjustment Costs.

● Graphics showing the forex

and how it affects our charge.
E.g. an arrow pointing
downwards (When I say the
more the shilling loses value)
labelled SHILLING equalling
(to emphasise that it is a result)
 another arrow pointing
upwards labelled FAC.

● We have a pie chart showing

TOM: These two components these statistics. I will share
together accounted for 42% of your them.
bill if you’re a Domestic Lifeline
consumer and 32% for Domestic
Ordinary consumers.

TOM: The Fourth component is

Inflation Adjustment Costs. It
● A graphic adding Inflation
varies according to domestic and
costs to the list of other
international inflation on cost of
components.
supply. It’s adjusted after every six
months starting from the 1st of
January every year.

ISAAC: Inflation I think we may not

have a lot of questions to ask. In any
case it ranges between 0.3 to 0.7 00001
which is not a challenge but still we 11:00-11:23
don’t have anybody who checks
because you know Wanjiku needs to
be told this inflation is this amount
because of this calculation, then you
agree, because even a cent on that
component can be a lot of money
when you’re talking about Kenya
Power collects about 20billion or
15billion Shillings per month.
TOM: The elephant in the room,
however, is the 16% Value Added
Tax on electricity. VAT is imposed ● A graphic adding VAT to the
on the Energy Cost and Fuel Cost. list.
It Presently takes up 12% of the
bill for all consumers. Many have
described it as an unhealthy tax
policy. One that’s harmful to the
growth of the economy.

But well as we’re saying as a

government we’re talking about these
people who are paying VAT, they’re
also paying PAYE if they’re
employed. There’re companies who
are paying VAT through the products 0007
they are doing and the effect of 11:00-11:34
reducing or removing VAT on the
bills would be great as a nation. In-
fact, it would bring, Africa... I mean it
would bring Kenya to more than
number ten down in Africa but right
now it is number three and we’re
likely to be number two or one
anytime soon. Simply because Kenya
has decided that it is only in
electricity where we can also capture
a lot of money and nobody will ask a
question.

TOM: Even the Energy and

Petroleum Regulatory Authority
has called for the reduction of these
taxes by 50%.
 {Insert article SS by Nation)

TOM: But that’s not all. The tariff

also contains levies, three of them;
The Energy Petroleum Regulation
Authority charge, The Water
Resource Management Authority
(WARMA) levy and Rural
Electrification Program charge
(REP).

TOM: Rural Electrification ● Create a graphic for levies list.

Program Levy or REP charge is ● Start with REP charge.
funneled into the implementation of
the Rural Electrification Program
that was launched by the
government to enhance access to
electricity in rural Kenya. This levy
has been constant since 2008 at 5%
of the Token amount. But that too
hasn’t gone uncontested.

ISAAC: If there is one component

that has a big challenge in accounting
for is that particular one because it
takes 5% of the energy cost. How
much money is it, How much have {ISAAC 001 12:33-12:44 +
we collected, what has it done? 14:17:14:25)
Nobody wants to explain to the
consumer yet it is the consumer
who’s trying to pay for that money.

TOM: WARMA Levy or Water ● Add WARMA to the list.

Resource Management Authority
levy is determined by the amount of
energy supplied from hydroelectric
stations such as Kindaruma and
Kiambere dams. It stands at 10
cents per KwH consumed.

TOM: Finally, the EPRA charge of Add EPRA to the list.

3 cents per unit that goes to the
energy regulator. EPRA has also
proposed a 50% reduction of this
charge.

TOM: A glaring observation that ● Add graphic showing the

can be made is that Fuel Costs and stats from ECSK.
Taxes constitute at least 47% of the
electricity bill.
TOM: While these prices remain
unbearable for many, KPLC insists
that its immediate focus is on
providing reliable supply, not
reducing the costs.

AY3245
GEOFFREY KPLC MD: We will 13:13-13:42
continue working to ensure that
Kenyans get quality supply and
reliable supply. That’s a priority. And
to ensure that there is guarantee of
power being there. That sustainability
is very important at whatever cost.
Sometimes it’s better to have
expensive power than no power.