M-Pesa is a breakthrough electronic money transfer technology that eliminates the need for physical cash. The introduction of M-pesa has revolutionized commerce in Kenya. There will be a fee associated with your money transfer.
There is a fee associated with every deposit or withdrawal made with M-Pesa. M-Pesa makes it easy to top off your phone with airtime; all you have to do is follow the on-screen prompts. You merely pay for the amount of airtime you choose, and it will be delivered instantly to your phone.
M-Pesa users can now store up to KSHs.300,000 in cash in their accounts. The maximum amount that can be sent in a single transaction has also been raised, from KSHs.150,000 to KSHs.300,000.
It’s also important to remember that agents cannot process deposits to new M-Pesa accounts. You must first add funds to your own M-Pesa account before sending them to another user.
Withdrawals from any M-PESA agent location must be a minimum of KSHs.50. Bonga Points, Safaricom’s customer loyalty program, now includes M-Pesa purchases.
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How Much Does It Cost To Use M-Pesa?
It costs nothing to open an M-Pesa account or make a deposit at an agent. It costs nothing to check your M-Pesa balance or make a purchase with Safaricom using M-Pesa. Your M-Pesa PIN is also free to change at any time.
The fees for sending money through M-PESA, Pochi La Biashara, and Business Till are as follows: the client
| Min(KSHs.) | Max(KSHs.) | M-PESA Charges |
| 1 | 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 | 35,000 | 105 |
| 35,001 | 50,000 | 105 |
| 50,001 | 150,000 | 105 |
To send money to other networks or unregistered M-Pesa line is slightly expensive as shown below.
| Min(KSHs.) | Max(KSHs.) | M-PESA Charges |
| 1 | 49 | N/A |
| 50 | 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 | 50,000 | N/A |
| 50,001 | 150,000 | N/A |
To withdraw money from M-Pesa agents, you will have to pay a fee as indicated below
| Min(Kshs) | Max(Kshs) | M-PESA Charges |
| 1 | 49 | N/A |
| 50 | 100 | 10 |
| 101 | 500 | 27 |
| 501 | 1,000 | 28 |
| 1,001 | 1,500 | 28 |
| 1,501 | 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 |
M-Pesa ATM Withdrawal Costs
The ATMs accept M-Pesa and allow you to withdraw funds. However, the daily limit has been set at Ksh20,000. Multiple withdrawals per day are permitted up to the daily maximum of Ksh20,000. The least amount you can withdraw from an ATM varies from machine to machine, but is usually around Ksh 200. There are ATMs that won’t let you take out less than Ksh500.
Find the withdrawal fees below.
| Min(KSHs.) | Max(KSHs.) | M-PESA Charges |
| 200 | 2,500 | 34 |
| 2,501 | 5,000 | 67 |
| 5,001 | 10,000 | 112 |
| 10,001 | 20,000 | 197 |
How Are Mpesa Fees Determined?
The amount you wish to send or withdraw will determine the transaction fee associated with using Mpesa services. Fees start at zero for transfers under Ksh50 and go up to Ksh105 when sending between Ksh50,001 and the maximum of Ksh150. The fees for withdrawals will start at Ksh10 for Ksh50 and go up to Ksh300 for withdrawals of up to Ksh150,000.
Does Mpesa Have a Maximum Transfer Amount?
Sending money to a Mpesa subscriber is limited to a maximum of Ksh150,000, while sending money to anyone else is capped at Ksh35,000. On Mpesa, both registered and unregistered users can send and receive payments of Ksh100 or less at no cost. Keep in mind that when you undo an M-pesa payment, the associated fees are returned to you as well.
Conclusion
M-Pesa’s ease of use and widespread adoption have helped to level the financial playing field. Cost-wise, sending money through M-Pesa is far more manageable than using a courier service. Your payment is safe and secure, and the turnaround time is quick.
The low costs charged by the M-Pesa payment system while using paybill services have allowed us to rethink our business practices.