Safaricom’s recent adjustments to M-Pesa tariffs have sparked a debate among Kenyan small businesses on whether Pochi la Biashara or Lipa na M-Pesa Buy Goods better supports their cash flow needs.

Immediate Access with Pochi la Biashara

From August 1 to October 31, 2026, customers depositing up to Ksh200 into a Pochi la Biashara account face no transaction fees. Beyond this threshold, fees range from Ksh7 for payments between Ksh201 and Ksh500, up to Ksh50 for amounts between Ksh2,501 and Ksh250,000.

A key advantage of Pochi la Biashara is that payments go straight into the merchant’s M-Pesa wallet, enabling instant use of funds. This feature benefits businesses reliant on daily stock replenishment, such as fruit vendors, milk sellers, and boda boda operators, who can immediately reinvest earnings without transfer delays or extra costs.

Cost Savings with Lipa na M-Pesa Buy Goods

Effective August 7, 2026, Lipa na M-Pesa Buy Goods updated its tariff structure, increasing the zero-fee payment threshold from Ksh200 to Ksh500. For payments exceeding Ksh500, merchants pay a 0.55% fee capped at Ksh200.

This change primarily aids supermarkets, pharmacies, restaurants, and retail outlets with many low-value transactions, as customers can now pay up to Ksh500 without incurring fees.

Reduced Transfer Charges from Business Till

Safaricom also cut transfer fees from Business Till accounts to M-Pesa wallets or PayBill numbers by up to 50%. For instance:

  • Transfers of Ksh101–500 now cost Ksh4, down from Ksh7
  • Ksh501–1,000 transfers reduced from Ksh13 to Ksh7
  • Ksh1,001–1,500 fees halved from Ksh23 to Ksh12
  • Ksh1,501–2,500 dropped from Ksh33 to Ksh17
  • Transfers of Ksh2,501–3,500 cut from Ksh53 to Ksh27

PayBill transfers also saw significant reductions, such as Ksh501–1,000 costing Ksh5 instead of Ksh10.

Choosing the Right Option for Your Business

The ideal choice depends on the business’s cash flow priorities:

  • Pochi la Biashara is best suited for traders needing instant fund access without transfer delays or costs, supporting rapid stock turnover.
  • Lipa na M-Pesa Buy Goods now offers lower transaction and transfer fees, benefiting established businesses handling many small payments daily while maintaining separation between business and personal finances.

In summary, traders like hawkers and freelancers may prefer Pochi la Biashara for immediate liquidity, whereas larger retailers and service providers might find Lipa na M-Pesa Buy Goods more cost-effective under Safaricom’s revised tariffs.