Kenya: Safaricom Expands Mobile Money Service to Paying Home Rental Charges
Kenya's Safaricom has expanded its M-Pesa mobile money service so that it can be used to pay rent on houses and homes. Under the new scheme -- called Lipa Kodi (Kiswahili for pay your rent) -- customers will pay Sh6 for transactions of up to Sh5,000, in the graduated scheme that will see those paying rent of between Sh50,000 and Sh70,000 charged a transaction fee of Sh220.
Lipa Kodi is designed to offer convenience and cost efficiency to tenants, landlords and housing agents by providing them with a safe and reliable rent payment and collection mode.
The Telco is targeting to recruit estate agents, Diaspora-based landlords, county authority and private landlords in the next financial year.
The 2009 census revealed that there were an estimated 6.5 million rental households in Kenya and with the ongoing urbanization, this figure is expected to be higher by now.