The Lower Eastern Times Opening The Third Eye
Safaricom has announced a significant reduction in M-PESA business transaction charges, with cuts of up to 50 percent taking effect from August 1, 2026, in a move the telco says is aimed at making digital payments more affordable for businesses and their customers.
Pochi la Biashara Charges Waived
Under the new pricing structure, running from August 1 to October 31, 2026, customers paying up to Sh200 to a Pochi la Biashara till will no longer incur any transaction fees. The updated fee structure for Pochi la Biashara transactions is as follows:
- Sh1–200: Free
- Sh201–500: Sh7
- Sh501–1,000: Sh13
- Sh1,001–1,500: Sh23
- Sh1,501–2,500: Sh33
- Sh2,501–250,000: Sh50
Lipa na M-PESA Buy Goods Gets Boosted Free Threshold
Starting August 7, 2026, businesses using the Buy Goods service will enjoy free collections on transactions up to Sh500, a significant increase from the previous Sh200 threshold. Beyond that limit, charges will be levied as follows:
- Sh0–500: Free
- Sh501–36,363: 0.55%
- Above Sh36,363: Capped at a maximum fee of Sh200
Business Till to M-PESA Transfers Cut in Half
Businesses moving money from their Till accounts to personal M-PESA accounts will also benefit from reduced charges, with fees dropping by as much as 50 percent. For example, a Sh500 transfer that previously cost Sh7 will now cost Sh4, while a Sh10,000 transfer will drop from Sh90 to Sh45. Transfers in the Sh45,000–250,000 range will see charges fall from Sh108 to Sh54.
Business Till to PayBill Transfers Also Reduced
Similarly, transfers from Business Till accounts to PayBill numbers have been revised downward. A Sh1,000 transfer, for instance, will now cost Sh5 instead of Sh10, while transfers in the Sh45,000–250,000 bracket will fall from Sh108 to Sh54.
Aligned With CBK Pricing Principles
Safaricom said the revised tariffs are in line with the Central Bank of Kenya’s pricing principles, which emphasize customer centricity, transparency, fairness, competition, and affordability. The telco framed the changes as part of its ongoing effort to lower the cost of doing business for its merchant customers while continuing to support Kenya’s growing digital payments ecosystem.
