Kenyan landlords have a new service from Safaricom dubbed Lipa kodi na mpesa which enables tenants to pay their rental bills via Mpesa mobile payments system. Lipa kodi na Mpesa basically means paying rent via Mpesa – a mobile banking platform which is widely used by Safaricom subscribers across the country. The service which is expected to offer a convenient and reliable mode for rental bill payment will reduce the risks of carrying money said Safaricom’s general manager for financial services, Betty Mwangi-Thuo
Lipa kodi na Mpesa is targeting to broaden the financial inclusion agenda through the use of mobile phones and is expected to redefine the payment ecosystem to Kenyans and how they meet their rental obligation. Contrary to Mpesa charges which some of the Kenyan tenants are currently using, the fee is twice expensive for money above Ksh 25000 than sending through Mpesa, for 25000 , Lipa Kodi costs Ksh 198 instead of Ksh 82 while for 50,000 would be 220 instead of Ksh 110.
Safaricom is venturing into the rental business in line with Kenya’s vast real estate market, estimated to cost a tune of ksh 7.2B – an indicator of great potential especially for the real estate segment. Reliable indicators prove the segments potential and Safaricom’s ambitious plan isn’t misplaced. The service provider intents to recruit Estate Agents, Diaspora based landlords, Local authorities and private landlords in the next financial year who will apply for the pay bill numbers.