House Hunting Tip: Always Inspect the Electricity Meter Before Signing a Rental Agreement
When searching for a rental house or apartment in Kenya, many people focus on rent price, location, and basic amenities like water and security.
However, one important detail often gets overlooked until it is too late: the type of electricity meter installed. Some properties use prepaid meters linked to the Last Mile Connectivity Project, known as LMCP. This government programme helped many landlords connect to power at a lower cost, but it can quietly increase your monthly electricity expenses as a tenant.
Under the LMCP, property owners could access a subsidised connection fee of around KSh 15,000. Instead of paying this amount upfront, Kenya Power provided it as an interest-free Stima Loan. The repayment is handled automatically through the prepaid meter. For every token you buy, half of the money goes toward clearing this loan, and only the remaining half buys actual electricity units. This deduction usually continues for two to three years until the loan is fully paid. As a result, you end up paying the full price for tokens but receive far fewer units than you would on a standard meter with no outstanding loan.
This setup means tenants effectively help cover the cost of the landlord’s subsidised connection without receiving any benefit or reduction in rent. It feels like an extra hidden charge added to your living expenses. For example, if you purchase KSh 100 worth of tokens on a normal meter, you might expect a certain number of units based on the current tariff. On an LMCP meter with an active loan, you could receive roughly half that amount. Over time, this adds up and can make your power costs noticeably higher than planned.
Before committing to any rental, take a few simple steps to protect yourself. Ask the landlord or agent directly whether the meter is under the Last Mile Connectivity Project or has any remaining Stima Loan balance.
You can also test it yourself by buying a small token of KSh 100 using the meter number through *977#, M-Pesa paybill 888880, or the Kenya Power app. Compare the units you receive: if you get the normal expected amount (typically around 4 to 6 units or more, depending on the tariff band), it is likely a standard meter. If you receive significantly fewer units, such as half or less, the loan deduction is probably active. In that case, consider walking away or negotiating a lower rent to make up for the extra power costs. Another quick check is to dial *977# and follow the prompts to manage meters or view token details for any outstanding debt information. If a loan remains, you could request that the landlord clears it with a lump-sum payment at a Kenya Power office before you move in. Taking these precautions early can save you from unpleasant surprises later.
