NAIROBI, Kenya — Safaricom has announced a significant reduction in M-PESA business transaction charges, cutting some fees by up to 50 per cent as part of efforts to make digital payments more affordable for businesses and customers.
The revised tariffs took effect on August 1, 2026, with additional changes affecting Lipa na M-PESA Buy Goods merchants scheduled to come into force on August 7, 2026.
Under the new pricing structure, customers making payments of up to Sh200 to Pochi la Biashara tills will no longer pay transaction fees. The waiver, which will run until October 31, 2026, is expected to encourage greater use of the platform by small businesses and informal traders.
Customers paying between Sh201 and Sh500 will now pay Sh7, while transactions between Sh501 and Sh1,000 will attract a Sh13 fee. Payments ranging from Sh1,001 to Sh1,500 will cost Sh23, those between Sh1,501 and Sh2,500 will be charged Sh33, and all transactions from Sh2,501 to Sh250,000 will attract a flat fee of Sh50.
Safaricom has also revised charges for Lipa na M-PESA Buy Goods merchants, increasing the threshold for free collections from Sh200 to Sh500, effective August 7, 2026.
Under the new structure, businesses will pay no collection charges on transactions of up to Sh500. Transactions between Sh501 and Sh36,363 will attract a fee of 0.55 per cent, while amounts above Sh36,363 will be subject to a maximum charge of Sh200.
Businesses transferring funds from their Business Till to an M-PESA wallet will also benefit from lower charges.
For example, the fee for transferring Sh500 has been reduced from Sh7 to Sh4, while a Sh1,000 transfer will now cost Sh7, down from Sh13. The cost of sending Sh2,500 has fallen from Sh33 to Sh17, Sh5,000 from Sh57 to Sh29, and Sh10,000 from Sh90 to Sh45. Transfers ranging between Sh45,000 and Sh250,000 will now attract a fee of Sh54, compared to the previous Sh108.
Similar reductions have been introduced for transfers from Business Till accounts to PayBill numbers. The fee for sending Sh500 has been lowered from Sh5 to Sh3, Sh1,000 from Sh10 to Sh5, Sh2,500 from Sh20 to Sh10, Sh5,000 from Sh34 to Sh17, Sh10,000 from Sh48 to Sh24, while transfers between Sh45,000 and Sh250,000 will now cost Sh54, down from Sh108.
Safaricom said the revised pricing is aligned with the Central Bank of Kenya’s principles on customer-centricity, transparency, fairness, competition and affordability.
The telecommunications company said the changes are intended to lower the cost of doing business, promote wider adoption of digital payments and support Kenya’s growing cashless economy.
