In 2020, MPESA transaction volume went up to 12.2 billion. Vodafone and Safaricom own MPESA. The telecommunication company provides mobile money services. You can send and receive money or buy goods using MPESA. There are M-PESA charges that you incur in your MPESA transactions.
According to Communication Authorities of Kenya, by the first quarter of 2020, the country had more than 202,100 active mobile money agents. Out of these numbers, MPESA agents were 173,000. This indicates that MPESA is taking the mobile money industry by storm.
New M-PESA Charges Guidelines
In the last quarter of 2020, Safaricom announced a reduction in MPESA transaction cost. The change implementation began on 1st January 2021. This is after the expiry of the zero-rated transaction for Ksh1,000 and below. Kenyans had the opportunity to enjoy the free transaction due to the COVID-19 pandemic.
According to Safaricom, the Central Bank of Kenya was involved in setting up the new MPESA transaction charges. First, you can enjoy a 45% reduction of almost 90% of the transaction you carry through MPESA. For instance, if you want to send Ksh. 101 to Ksh. 500, you will be charged Ksh 6.
If you transact Ksh. 100 and below, you won’t incur any M-PESA charges. Besides, you can enjoy free transactions between M-PESA and bank accounts like Equity. The micro-business owners using Lipa Na MPESA and Pochi La Biashara Till Number services can also enjoy the reduced charges.
The reduced M-PESA charges are permanent, and more than 26.8 million MPESA users can send or receive money at a lower cost. You can have up to Ksh 300,000 in your M-PESA account. Besides, you can transact Ksh. 150,000 in one transaction.
Safaricom has reduced the transaction cost, allowing people to carry on their business well amidst COVD-19. The company aims to support Small and Medium Enterprises (SMEs) in their daily operations. Apart from M-Pesa charges reduction, the company has also rolled out affordable internet packages.
M-PESA Withdrawal Charges from Agent Shops
| MIN (Ksh) | Max (Ksh) | M-PESA Charges |
| 0 | 49 | n/a |
| 50 | 100 | 10 |
| 101 | 500 | 27 |
| 501 | 2,500 | 28 |
| 2,501 | 3,500 | 50 |
| 3,501 | 5,000 | 67 |
| 5,001 | 7,500 | 84 |
| 7,501 | 10,000 | 112 |
| 10,001 | 15,000 | 162 |
| 15,001 | 20,000 | 180 |
| 20,001 | 35,000 | 191 |
| 35,001 | 50,000 | 270 |
| 50,001 | 150,000 | 300 |
MPESA Transaction Charges: Transfer Charges to Safaricom Users, Pochi La Biashara, and Business Till to Customers
| MIN (Ksh) | MAX (ksh) | Transfer Fee |
| 0 | 49 | 0 |
| 50 | 100 | 0 |
| 101 | 500 | 6 |
| 501 | 1,000 | 12 |
| 1,001 | 1,500 | 22 |
| 1,501 | 2,500 | 32 |
| 2,501 | 3,500 | 51 |
| 3,501 | 5,000 | 55 |
| 5,001 | 7,500 | 75 |
| 7,501 | 10,000 | 87 |
| 10,001 | 15,000 | 97 |
| 15,001 | 20,000 | 102 |
| 20,001 | 150,000 | 105 |
MPESA Transfer charges to Other Registered Mobile Money Users (T-Kash, Airtel Users)
| MIN (Ksh) | MAX (ksh) | M-PESA Charges |
| 0 | 49 | Free |
| 50 | 100 | Free |
| 101 | 500 | 6 |
| 501 | 1,000 | 12 |
| 1,001 | 1,500 | 22 |
| 1,501 | 2,500 | 32 |
| 2,501 | 3,500 | 51 |
| 3,501 | 5,000 | 55 |
| 5,001 | 7,500 | 75 |
| 7,501 | 10,000 | 87 |
| 10,001 | 15,000 | 97 |
| 15,001 | 20,000 | 102 |
| 20,001 | 150,000 | 105 |
M-PESA Transfer Rate to Unregistered Users
| MIN (Ksh.) | MAX(Ksh.) | MPESA Charges |
| 0 | 100 | n/a |
| 101 | 500 | 45 |
| 501 | 1,000 | 49 |
| 1,001 | 1,500 | 59 |
| 1,501 | 2,500 | 74 |
| 2,501 | 3,500 | 112 |
| 3,501 | 5,000 | 135 |
| 5,001 | 7,500 | 166 |
| 7,501 | 10,000 | 205 |
| 10,001 | 15,000 | 265 |
| 15,001 | 20,000 | 288 |
| 20,001 | 35,000 | 309 |
| 35,001 | 150,000 | n/a |
M-PESA Rates for ATM Withdrawal
| MIN (Ksh.) | MAX (Ksh.) | ATM withdrawal charges |
| 200 | 2,500 | 34 |
| 2,501 | 5,000 | 67 |
| 5,001 | 10,000 | 112 |
| 10,001 | 20,000 | 197 |
M-Pesa Withdrawal Charges FAQs
Q: How much does it cost to withdraw money from Safaricom M-PESA agent?
A: The amount you pay depends on the amount you want to withdraw. For instance, if you’re going to withdraw Ksh. 500, you will be charged Ksh 27.
Q: How much can I withdraw from MPESA in a day?
A: You can withdraw up to Ksh. 300,000 from MPESA in a day. However, you can only withdraw a maximum of Ksh. 150,000 in one transaction.
Q: How much does it cost to withdraw Ksh. 500 in an agent shop?
A: Safaricom charges Ksh. 27 to withdraw Ksh. 500.
Q: How much does it cost to send money from Safaricom to my bank account?
A: If you want to send money from MPESA to your bank account, Safaricom charges Ksh. 0. This is because MPESA has waived off all transaction fees for bank accounts.
Q: How much does it cost to send money from MPESA to an unregistered user?
A: If you want to send money from MPESA to an unregistered user, you will be charged a fee of Ksh. 45 for any amount less than Ksh. 500.
Q: How often can I withdraw money from my MPESA account?
A: You can withdraw money from your MPESA account as often as you want. However, the maximum amount you can withdraw in a day is Ksh. 300,000.
Q: How much does it cost to transfer money from MPESA to another mobile money service provider?
A: If you want to transfer money from MPESA to another mobile money service provider, such as T-Kash or Airtel Money, you will be charged a fee of Ksh. 0 for any amount less than Ksh. 500.
