NAIROBI, Kenya — As thousands of Kenyans hunt for new apartments this month, a silent financial predator is lurking behind the shiny tiles and “modern finishes” of many rental units.
An investigation into power billing has revealed that a significant number of tenants are unknowingly paying off their landlords’ infrastructure debts every time they buy electricity tokens. The culprit is a loophole in the Last Mile Connectivity Project (LMCP)—a government initiative that provides “interest-free” power connections but leaves the bill for the tenant.
The “50% Trap” Explained
Under the LMCP, property owners can have their buildings connected to the national grid for a subsidized fee of KSh 15,000. Instead of paying this upfront, Kenya Power (KPLC) advances the amount as a “Stima Loan.”
The trap? KPLC recovers this loan by deducting exactly 50% of every token purchase made on that meter.
“I bought tokens for KSh 1,000 expecting to last a month,” says Jane, a resident of a new block in Pipeline. “I only got KSh 500 worth of units. I essentially paid KSh 500 toward my landlord’s debt. That’s money I’ll never get back.”
The Cost Breakdown (2026 Estimates)
For most middle-income households, the difference is staggering:
| Purchase Amount | Standard Meter (Units) | Stima Loan Meter (Units) |
| KSh 500 | ~28–30 Units | ~14–15 Units |
| KSh 1,000 | ~56–60 Units | ~28–30 Units |
How to “Audit” Your Meter Before You Move In
Experts advise house hunters to treat the electricity meter with as much scrutiny as the water taps. Before paying a deposit, perform these three checks:
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The KSh 100 Litmus Test: Buy a token worth KSh 100 for the house’s meter number via M-Pesa (Paybill 888880). If you receive fewer than 3 units, the meter is likely under a Stima Loan repayment plan.
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The USSD Deep Dive:
Dial
*977#on your Safaricom line. Select Prepaid Services > Token Details. Check the “Debt” column in the SMS response. If you see consistent deductions, walk away or negotiate. -
The “Okoa Stima” Scan:
While checking for the Stima Loan, ensure the previous tenant hasn’t left an Okoa Stima balance. This short-term debt will swallow your first token purchase entirely.
Know Your Rights
In Kenya, a landlord is legally required to provide a premises fit for habitation. While the LMCP is a legal connection, failing to disclose a debt tied to the meter can be viewed as a breach of the “Quiet Enjoyment” clause of a lease.
Tenant Options:
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Demand a Lump Sum Clearance: Ask the landlord to pay the outstanding KSh 15,000 at a KPLC office and provide a clearance receipt.
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Rent Deduction: Negotiate a monthly rent discount equivalent to your estimated monthly loss in power units.
