Safaricom has announced significant reductions in M-PESA transaction fees targeting Kenyan businesses, particularly benefiting micro, small, and medium enterprises (MSMEs). The changes, effective from August 7, 2026, aim to lower payment costs and promote wider adoption of digital commerce.

Key Fee Reductions

  • Pochi la Biashara: Payments up to Ksh200 will now attract zero transaction fees, easing costs for informal traders.
  • Lipa na M-PESA Buy Goods: The free collection threshold has been raised from Ksh200 to Ksh500, allowing businesses to receive payments up to this amount without charges. Collections above Ksh500 will incur a 0.55% fee capped at Ksh200.
  • Business Till Transfers: Transfer fees from M-PESA Business Till accounts to wallets or PayBill numbers have been reduced by up to 50%, with transfers up to Ksh100 remaining free.

Supporting Kenya’s Business Ecosystem

These tariff adjustments support Safaricom’s broader strategy to make digital payments more affordable and accessible. By reducing operational costs, the company hopes to help businesses retain more earnings and encourage cashless transactions.

Safaricom noted that the revisions align with the Central Bank of Kenya’s principles emphasizing customer-centricity, transparency, fairness, and competition. With millions of Kenyan traders relying on M-PESA daily, the fee cuts are expected to facilitate smoother business operations and stimulate economic growth.

About the Services

  • Pochi la Biashara enables informal traders such as food vendors and boda boda riders to manage business income separately on their existing M-PESA numbers without formal business registration.
  • Lipa na M-PESA Buy Goods is widely used by merchants across Kenya for cashless payments, supporting transactions of all sizes.

Industry experts have identified transaction fees as a barrier to digital payment adoption among small enterprises. Safaricom’s new pricing structure aims to address this challenge, encouraging more merchants to embrace electronic payments and reduce dependency on cash.

As M-PESA evolves beyond person-to-person transfers into a comprehensive payments platform, these fee reductions mark a major step in supporting Kenya’s growing digital economy.