Paybill vs till vs bank account for collecting rent: which is best?

Most Kenyan tenants pay rent by M-Pesa or bank. As a landlord or agency, you have three main choices: an M-Pesa Paybill, an M-Pesa till (Buy Goods), or a bank account. This paybill vs till rent guide compares them on the three things that matter most: what they cost, how much work it takes to match payments to tenants, and how much tenants trust them.

The short answer

• Paybill is usually the best fit for rent. Tenants type an account number, such as their house number, so you can see who paid for which unit.
• Till is simple and quick to set up, but it has no account number. You only see a name and phone number, which makes matching harder.
• Bank account suits large payments and tenants who pay by transfer, but references are often messy and money can take longer to show.

Many landlords end up using a Paybill as the main channel, with a bank account for tenants who prefer transfers.

Paybill vs till rent: side-by-side comparison

	Paybill	Till (Buy Goods)	Bank account
Account number field	Yes	No	Sometimes (reference)
Matching payments to units	Easy	Hard with many tenants	Medium to hard
Who pays the fee	Depends on the tariff you choose	Usually the business	Depends on bank and method
Setup effort	More paperwork	Less paperwork	Usually already have one
Tenant sees your business name	Yes	Yes	Yes, if account is in business name
Best for	Most rental buildings	Very small landlords	Large rents, company tenants

Costs compared

Fees change, so always check the latest tariffs from Safaricom and your bank before you decide. What matters is understanding how each option charges.

Paybill. Safaricom offers different Paybill tariffs. On some, the tenant pays the transaction fee. On others, the business pays. If tenants pay the fee, some may short-pay or complain. If you pay, the cost comes out of your rent income. You may also pay charges when you move money from the Paybill to your bank account.

Till. With Buy Goods, the tenant usually pays nothing to send, and the business pays a small charge on each payment. This feels good for tenants, but on a building with many units the charges add up every month.

Bank account. Tenants who pay by bank transfer or by M-Pesa to a bank's own Paybill may pay a fee on their side. You may pay monthly account charges. Cheque and cash deposits can also attract charges.

Tip: Work out your real cost by taking last month's rent roll and running it through the current tariff for each option. A few shillings per payment looks small until you multiply it by every unit, every month.

Reconciliation effort compared

Reconciliation means matching each payment you receive to the right tenant and the right month. This is where most landlords lose hours, and where arrears (unpaid rent that is overdue) slip through.

Paybill: least effort. The account number field is the big win. Ask every tenant to use their unit number, for example "B4". Your statement then shows the unit beside each payment. Problems still happen when a tenant types the wrong number, so check for odd entries each month.

Till: most effort with many units. A till shows only the payer's name and phone number. If a tenant's spouse, employer or friend pays, the name will not match your records. With five tenants you can manage this from memory. With fifty, it becomes a monthly headache, and disputes about "I already paid" are harder to settle.

Bank account: medium to hard. Bank references are free text. Tenants write different things, or nothing at all. Deposits made at an agent may show only the agent's details. Money paid late on a Friday may only appear after the weekend. Expect to spend time calling tenants to confirm payments.

Ways to cut reconciliation work

• Give each tenant one fixed reference (their unit number) and put it in the lease.
• Send a reminder before rent day that repeats the Paybill and account number.
• Download statements on a set day each month, not when problems come up.
• Use software that reads your payment records and matches them to tenants for you.

Trust compared

Tenants are rightly careful. Fraudsters sometimes send fake messages asking tenants to pay rent to a "new number". The way you collect rent affects how safe tenants feel.

• Paybill and till both show your registered business name on the M-Pesa confirmation before the tenant enters their PIN. This reassures tenants they are paying the right party.
• Bank accounts in a company or business name look professional and are often what corporate tenants and employers require.
• Personal M-Pesa numbers are the weakest option. Tenants cannot easily tell a real number from a fake one, and mixing rent with personal money makes your records hard to defend.

Whatever you choose, tell tenants in writing that payment details will never change by SMS or phone call alone. Keep the same details for as long as possible.

Which should you choose?

Choose a Paybill if you have more than a handful of units, you manage for several owners, or you want clear records with little effort. This is the right choice for most agencies.

Choose a till if you have very few tenants, you know each of them well, and you want the quickest setup.

Add a bank account if you have high rents, company tenants, or tenants who want to pay by standing order (an automatic monthly bank payment). Many landlords use both a Paybill and a bank account.

Before you apply, check what Safaricom or the bank needs from you. Requirements differ for individuals, sole traders and registered companies, and a Paybill usually needs more documents than a till.

See ISHI in action

Whichever channel you use, ISHI helps landlords and agencies keep rent records in one place, match payments to tenants and see arrears at a glance. To see how it would work for your properties, book a free demo at www.ishi.digital/contact, call 0116888777 or email hello@ishi.digital.