Kenya Power’s Token System: How It Works

In the past few days, Kenyans have been up in arms over prolonged delays during the purchase of power tokens.

The anger exhibited by the majority of Kenya brought to the surface that most of them do not understand how the token system works and reasons why Kenya Power has vendors.

Some have accused Kenya Power of planning to ‘defraud’ them of their ‘hard-earned’ cash but is it?

What most power consumers don’t know is that Kenya Power has 11 vendors which include Vendit, Dynamo, Equity Bank (Equitel), DTB Bank, NIC Bank, KCB, Uchumi among others.

Kenya Power’s own paybill number is 888880 which most Kenyans are familiar with. This paybill number controls 85 percent of all the vending with other vendors sharing the remaining 15 percent.

How does vending work? This is the bone of the matter. First, a token can be purchased by either paying directly to the vendor or through a mobile phone, say MPESA or Airtel Money. These mobile platforms are owned by mobile operators. Not Kenya Power.

Mobile operators have various charges levied on the value of transactions hence whatever value tokens bought, a customer is charged that fee. Now, that fee does not go to Kenya Power. It belongs exclusively to mobile operators. Nobody gains or gets a portion of this as it is put in the public domain by some quarters.

Here is another thing; how are tokens charged? When one vends at the beginning of their billing cycle, there are standard charges that are levied; for instance, the standing charge which is at 174 shillings, the fuel cost, VAT which is 16 percent, ERC, REA, WARMA (water body) and inflation. When one pays 200 shillings, for example, something like 190 shillings may be deducted with the remaining 10 shillings going to the purchase of actual tokens. If you subsequently buy another 200, you will get the total units for 200 shillings simply because there will be no deductions.

What people should understand is that power units have a graduated scale and, therefore, have different prices. From 0 units to 50 units, the price is 2.50 shillings per unit. From 51 units to 1,500 units, the price is 12.75 shillings per unit and from 1,501, the price is 20.45 shillings per unit.

Therefore, if one buys tokens for 200 shillings and after the mandatory deduction of 190 shillings, the balance of 10 shillings will get one 4 tokens. If one buys for another 200, one should get 80 units but based on a graduated scale, one gets 46 units at 2.50 shillings per unit for 115 shillings. After this, one then automatically graduates to the second band where tokens are now charged at 12.50 shillings per unit. The balance of 85 shillings gets one 6 units.