Transformers are rated in KVA (kilovolt-amperes) rather than KW (kilowatts) because KVA measures apparent power, which accounts for both real power and reactive power. The relationship between real power and apparent power is defined by the power factor, which can be less than one due to the load's reactance. This means that the actual power consumed may differ from the apparent power, making KVA a more accurate representation of a transformer's capacity. Using KVA ensures that the rating reflects the total power handling capability of the transformer without being affected by the power factor. Therefore, transformers are rated in KVA to provide a clearer understanding of their performance under varying load conditions.