How to bill water and electricity to tenants in Kenya
Utilities are the second-biggest source of rent arguments. A clear method, a reading every month and a bill that shows the working end most of them.
The method
- Read each house’s meter on the same day each month and note the reading.
- Subtract last month’s reading to get the units used.
- Multiply by your rate per unit. Use the rate you actually pay your supplier, plus any agreed admin margin that is written in the agreement.
- Add fixed charges such as garbage or a pump charge, if agreed.
- Send the bill showing both readings, the units and the rate.
A worked example
These numbers are for illustration only. Use your own rates.
| Previous reading | 1,240 units |
| Current reading | 1,262 units |
| Units used | 22 |
| Rate per unit | KES 150 |
| Usage charge (22 × 150) | KES 3,300 |
| Fixed garbage charge | KES 300 |
| Utility bill | KES 3,600 |
Rules that prevent arguments
- Put the method in the tenancy agreement before anyone moves in.
- Show the working on every bill.
- Read the meter at move-in and move-out so the first and last bills are right.
- Be consistent. The same day, the same method, the same rate for everyone.
Billing utilities by hand across many houses takes hours each month. That is the main reason landlords move to software; see Excel vs software.
Frequently asked questions
What if the building has one meter?
Installing a sub-meter per house is the fairest fix. Until then, split by an agreed method (for example by number of occupants) and write it into the tenancy agreement.
Can I add a service charge on top?
Yes, if the agreement states it. Fixed monthly charges for garbage, security or water-pump costs are usually listed separately from per-unit charges.
How often should I read the meters?
Monthly, on the same day, written down and ideally photographed.
In Kodi you enter each house’s meter reading; it works out the units and the bill at your rate, adds it to the tenant’s balance and can text the tenant their bill. See water and electricity billing.
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