What can you achieve with it?

• Every deposit transaction — collection, application, and refund — recorded in an immutable GL ledger • Tenants receive a clear, itemised deposit statement at move-out — disputes resolved before they escalate • Deposit liability correctly shown on balance sheet throughout tenancy (not recognised as income prematurely) • Full audit trail of deposit settlement decisions, with timestamps and user attribution • Refunds processed and recorded in the same workflow — one place, complete history • Compliance with landlord-tenant accounting best practices without a manual spreadsheet

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How Landlords End Security Deposit Disputes with a Full Deposit Ledger

Who this is for

You collect a security deposit from new tenants at move-in, typically one to three months' rent. You've had situations where a tenant moved out and disputed deductions — either claiming the damage was pre-existing or that they're owed more than you've returned. The dispute often results in either an awkward stalemate or a loss you absorb to avoid further conflict.

The problem

Security deposit disputes are one of the most common landlord-tenant conflicts in Kenya — and they almost always come down to missing documentation. When a landlord collects a deposit informally (cash or M-Pesa), there's often no receipt, no formal record of what was held, and no agreed deduction schedule. The tenant's memory of what they paid and the landlord's record rarely match.

On move-out, the landlord deducts for damages or rent arrears and refunds the remainder, but without a clear ledger showing every transaction — what was received, what was applied, and what was refunded — the tenant has no basis to accept or challenge the numbers. The dispute becomes a 'he said, she said' with no resolution except goodwill or legal action.

What you can achieve

Every deposit transaction — collection, application, and refund — recorded in an immutable GL ledger
Tenants receive a clear, itemised deposit statement at move-out — disputes resolved before they escalate
Deposit liability correctly shown on balance sheet throughout tenancy (not recognised as income prematurely)
Full audit trail of deposit settlement decisions, with timestamps and user attribution
Refunds processed and recorded in the same workflow — one place, complete history
Compliance with landlord-tenant accounting best practices without a manual spreadsheet

The Kokodi workflow

1
Step 1
Create deposit invoice at move-in
Action
When a new tenancy begins, create a deposit invoice for the agreed amount. GL posts: DR Deposits Receivable 1060 / CR Deposits Held 2040.
2
Step 2
Tenant pays deposit via portal
Action
Tenant pays the deposit invoice via M-Pesa STK or manual payment entry. A receipt is generated automatically and visible in their portal.
3
Step 3
Deposit held on balance sheet
Automated
The deposit sits as a liability (Account 2040 — Tenant Security Deposits Held) on the balance sheet throughout the tenancy, not treated as income.
4
Step 4
Apply deposit to outstanding rent on move-out
Action
At move-out, use Settle Deposit to apply part or all of the deposit against any outstanding rent invoices. GL: DR 2040 / CR AR 1050.
5
Step 5
Process refund for remaining balance
Action
If a balance remains after rent settlement, process the refund via M-Pesa or bank transfer. GL: DR 2040 / CR Bank 1040.
6
Step 6
Generate deposit statement for tenant
Report
Print or email the full deposit ledger: amount collected, date, what was applied to rent, and what was refunded — timestamped and audit-ready.