Lead image for Safaricom halves M-Pesa merchant fees in CBK-led move.
Safaricom has slashed charges on transferring funds from business tills to mobile wallets and Paybill numbers by as much as 50 per cent, in a shake-up of M-Pesa tariffs that promises significant relief for small traders and consumers alike.
Under the new regime, effective 7 August 2026, businesses using Safaricom's M-Pesa business till — a dedicated account that allows merchants to receive customer payments — will pay substantially less when moving cash from those tills to their personal M-Pesa wallets or using it to pay bills through the Paybill service, which allows businesses to receive or send bulk payments to corporate accounts.
The changes align with Central Bank of Kenya's pricing principles on customer-centricity, transparency and affordability, Safaricom said. The changes come as households across the country grapple with stubborn inflation that held at 6.5 per cent in July.
The most significant relief comes under the revised Pay to Mobile tariff, which governs transfers from a business till to any M-Pesa registered mobile number — essentially allowing traders to withdraw their daily collections into their personal accounts.
For transfers of Sh101-500, the fee drops to Sh4 from Sh7 — a 43 per cent reduction. For Sh501-1,000, the charge falls to Sh7 from Sh13, nearly halving the cost. Larger transfers of Sh1,501-2,500 now cost Sh17, down from Sh33, while Sh15,001-20,000 transfers drop sharply to Sh53 from Sh105 — a 49.5 per cent cut.
For Pay to Paybill transfers — which allow businesses to pay utility bills, suppliers or other corporate accounts directly from their till — fees have also been significantly reduced.
Transfers of Sh101-500 fall to Sh3 from Sh4, while Sh501-1,000 drops to Sh10 from Sh12. Sh1,501-2,500 transfers decline to Sh25 from Sh27, and larger amounts up to Sh250,000 now attract a flat fee of Sh52, down from Sh54.