Thousands of Kenyan small and medium-sized enterprises (SMEs) stand to benefit from Safaricom's revised M-Pesa transaction fees, set to take effect on August 7, 2026. The telecom giant has lowered charges for key business payment services, aiming to reduce costs and enhance profitability for businesses across the country.
Key Changes to M-Pesa Business Charges
- Higher Free Collection Threshold: The free collection limit for Lipa na M-PESA Buy Goods has increased from Ksh200 to Ksh500. This means businesses will no longer pay fees on customer payments up to Ksh500, a significant relief for many small retailers where transactions under Ksh500 are common.
- Reduced Transfer Fees: Fees for moving money from M-PESA Business Till accounts to M-PESA wallets and PayBill numbers have been cut by up to 50%. For example, transfers between Ksh101 and Ksh500 will now cost Ksh4, down from Ksh7, and charges for transfers above Ksh45,000 have been halved from Ksh108 to Ksh54.
- Fee Structure for Larger Transactions: Collections between Ksh501 and Ksh36,363 will incur a 0.55% fee, while transactions above this remain capped at Ksh200. For Pochi la Biashara, payments between Ksh201 and Ksh500 will attract a Ksh7 fee, and transactions between Ksh2,501 and Ksh250,000 will continue with a flat Ksh50 charge.
Implications for Kenyan Businesses
These tariff adjustments are expected to help businesses, including retail shops, restaurants, pharmacies, salons, supermarkets, and informal traders, keep more of their daily revenue by lowering the cost of accepting digital payments. With reduced transaction and transfer fees, SMEs can improve cash flow management and allocate more resources to inventory, wages, and growth initiatives.
Safaricom emphasises that the pricing review aims to make digital payments more accessible and affordable, encouraging wider adoption of cashless transactions and supporting the expansion of Kenya’s digital economy.
