Safaricom cuts M-Pesa fees for small businesses

Close-up of hand using smartphone for contactless payment at a terminal on wooden surface. Photo: Anna Shvets/Pexels

Through its “Pata More” initiative, Safaricom Plc has introduced reduced M-Pesa fees for small businesses, effective from August 1 until October 31. Under this campaign, merchants using Lipa na M-Pesa Till now incur no charges for customer transactions of Ksh500 or less.

Previously, a 0.55% fee applied to payments between Ksh201 and Ksh500. While larger payments retain this rate, they are capped at Ksh200 per transaction. Fuel merchants remain unaffected, with customers continuing to bear the transaction costs.

Reduced Transaction Costs

Fees for payments made from a Business Till have dropped by as much as 50%. Sending amounts between Ksh10,000 and Ksh15,000 to a mobile number now costs Ksh50, down from Ksh100. For higher transfers, such as those between Ksh45,000 and Ksh250,000, the charge is Ksh54, reduced from Ksh108.

Pay to Paybill fees have also decreased significantly for Paybills on the Business Bouquet and One Account Business Bouquet tariffs. However, charges for Paybills on the Mgao and Customer Bouquet tariffs remain unchanged.

Pochi la Biashara Updates

On Safaricom’s Pochi la Biashara platform, designed for informal traders, customer payments of Ksh200 or less are now free. For transactions above Ksh200, customer-to-Pochi charges are capped at Ksh50. Merchants withdrawing from their Pochi wallet also face a Ksh50 maximum fee, down from a previous high of Ksh108.

Pochi merchants require no action to benefit from these changes. They can continue accepting payments as usual while informing customers of the reduced fees. Alongside these fee cuts, Safaricom offers additional tools, including credit via Taasi Pochi and Fuliza Biashara, savings through Ziidi Pochi and Ziidi Biashara, insurance with Tuunza Mapato, and merchant-specific data bundles.

The campaign extends beyond M-Pesa to include mobile data, home and business fiber, and a bundle tailored for taxi drivers. Safaricom aims to make payments more affordable, encourage M-Pesa usage, and support small businesses in adopting cashless transactions.

Fee Adjustments and Campaign Duration

Safaricom’s fee reductions are in effect from August 1 to October 31. For Pochi la Biashara users, customer payments of Ksh200 or less are free, while charges above this amount are capped at Ksh50. Merchant withdrawals from Pochi are also limited to Ksh50, down from a previous maximum of Ksh108.