How to collect rent with M-Pesa in Kenya
Nearly every tenant already pays rent by M-Pesa. The question is which M-Pesa route gives you clean records and the least chasing. Here are the four options, and how to pick.
The four ways to collect rent on M-Pesa
| Route | How tenants pay | Good for | Watch out for |
|---|---|---|---|
| Send Money to your number | Phone number | One or two houses | Rent mixes with personal money; no account number to identify the house |
| Pochi la Biashara | Phone number, business wallet | Small landlords who want to separate rent | Limited reporting for many tenants |
| Till (Buy Goods) | Till number | Shops more than homes | No account number, so you cannot tell which house paid |
| Paybill | Business number + account number | Landlords with many houses | Needs set-up; tenants must type the right account number |
Which should you choose?
If you manage more than a handful of houses, use a Paybill with the house number as the account number. It is the only route that tells you automatically which house a payment is for. If you have two or three houses, Send Money or Pochi la Biashara works, as long as you record every payment.
Five habits that keep rent records clean
- Give each house a fixed account reference (for example B4) and print it on the tenancy agreement.
- Record every payment the same day, with the M-Pesa code, amount and date.
- Issue a receipt every time, including for part-payments. Use the free rent receipt generator if you do not yet use software.
- Keep rent separate from personal spending so your total for the month is provable.
- Send a confirmation SMS so the tenant knows it was received.
What to do when a tenant pays the wrong amount
Record exactly what arrived, show the new balance on the receipt, and message the tenant the same day. A part-payment is not a problem if it is written down; it becomes one only when it is forgotten.
Why records matter beyond the tenant
Your M-Pesa total for the month is also what you declare for MRI tax. Landlords who record as they go can file in minutes; those who rely on scrolling through messages dread the 20th.
Frequently asked questions
Can I use my personal M-Pesa number to collect rent?
You can, and many small landlords do. The drawback is that rent mixes with personal transactions, which makes it hard to prove what was collected, for example when filing MRI tax. A business route gives cleaner records.
What account number should tenants use on a Paybill?
Use something unique and easy to remember, usually the house number. The account number is what lets you tell who paid.
How do I know who paid if two tenants send the same amount?
The M-Pesa transaction code and the account number or sender name tell you. Always record the code on the receipt.
Do I need a business to get a Paybill or Till?
Safaricom has its own application requirements for Paybill and Till numbers. Check their current requirements, or collect through a bank Paybill that your bank offers to account holders.
In Kodi, tenants keep paying by M-Pesa, bank or cash; you record the payment in a few taps and the receipt, balance and SMS follow. If you bank with KCB, payments can even be matched to houses automatically. See rent collection.
On the next page, tap “New here? Create an account”. All you need is your phone number — no card or payment to start.