In Kenya, Mpesa has proven to be a handy Mobile tool that allows Kenyan citizens to accomplish various financial obligations by just tapping on their phones. Mpesa is owned by Kenya’s leading Telco operator, Safaricom. It was unveiled in 2007, and since then, the numbers have grown to over 56.7 million for the financial year ending 31 March 2023. With these numbers, it is evident that Mpesa has become an integral part of the Kenyan economy, offering a convenient and accessible way for millions to conduct daily financial activities. To send and receive money, Mpesa usually charges customers some amount commonly presented to us, Mpesa charges, or Mpesa Transactional Charges. In this article, We will tell you everything you need about Mpesa Charges in Kenya in 2024.
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Overview of New Mpesa Charges 2024
The increase in Mpesa charges implies that users, from individuals to businesses, must adjust their financial strategies. For the average Mpesa user, this means a deeper dive into their pockets, especially for high-value transactions. This change could potentially alter consumer behaviour, prompting a shift towards less frequent but larger transactions or even a consideration of alternative financial services.
Small and medium-sized enterprises (SMEs), which form the backbone of Kenya’s economy and often rely heavily on Mpesa for transactions, are particularly impacted. These businesses might face a tricky balancing act, weighing the need to increase prices against maintaining customer loyalty. Adaptation strategies might include restructuring their business models or exploring alternative digital payment platforms.
Detailed Breakdown of Mpesa Charges
The new structure for sending charges is as follows:
Table 1: Charges for Transfers to M-PESA Users, Pochi La Biashara, and Business Till to Customer
| TRANSACTION RANGE (KSHS) | CUSTOMER CHARGES (KSHS) |
|---|---|
| MIN | MAX |
| 1 | 49 |
| 50 | 100 |
| 101 | 500 |
| 501 | 1,000 |
| 1,001 | 1,500 |
| 1,501 | 2,500 |
| 2,501 | 3,500 |
| 3,501 | 5,000 |
| 5,001 | 7,500 |
| 7,501 | 10,000 |
| 10,001 | 15,000 |
| 15,001 | 20,000 |
| 20,001 | 35,000 |
| 35,001 | 50,000 |
| 50,001 | 250,000 |
Table 2: Charges for Transfers to Other Registered Mobile Money Users
| TRANSACTION RANGE (KSHS) | CUSTOMER CHARGES (KSHS) |
|---|---|
| MIN | MAX |
| 1 | 49 |
| 50 | 100 |
| 101 | 500 |
| 501 | 1,000 |
| 1,001 | 1,500 |
| 1,501 | 2,500 |
Table 3: Charges for Transfers to Unregistered Users and Withdrawals from M-PESA Agent
| TRANSACTION RANGE (KSHS) | CUSTOMER CHARGES (KSHS) |
|---|---|
| MIN | MAX |
| 1 | 11 |
| 11 | 29 |
| 47 | 29 |
| 29 | N/A |
| 51 | 29 |
| 29 | N/A |
| 76 | 29 |
| 2501 | 5000 |
| 5001 | 10000 |
| 10001 | 35000 |
Analysis of Withdrawal Charges
Below are the new revised rates that you need to know from the previous model:
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1. Transfer to M-PESA Users, Pochi La Biashara, and Business Till to Customer
- Minimum Range (KSHS): 1
- Maximum Range (KSHS): 49
- Charges (KSHS): Free
For small transactions within this range, the good news is that there are no charges. Whether you’re sending money to a friend or making a business payment, you won’t incur any fees.
2. Transfer to Other Registered Mobile Money Users
- Minimum Range (KSHS): 50
- Maximum Range (KSHS): 100
- Charges (KSHS): Free
In this category, you can still enjoy free transactions for amounts between 50 KSHS and 100 KSHS when sending money to other registered mobile money users.
3. Transfer to Unregistered Users
- Minimum Range (KSHS): N/A
- Maximum Range (KSHS): N/A
- Charges (KSHS): N/A
For transferring money to unregistered users, there is no specific fee structure mentioned, denoted by “N/A.” However, it’s essential to understand the potential costs involved, as they may vary.
4.Withdrawal from M-PESA Agent
- Minimum Range (KSHS): 1
- Maximum Range (KSHS): 49
- Charges (KSHS): Free
For withdrawing cash from an M-PESA agent, you can do so for free within the range of 1 KSHS to 49 KSHS. This is convenient for small withdrawals, making it accessible to many users.
Impact of New Charges on Consumers
With the new Mpesa charges, Mpesa users will be forced to dig deeper into their Pockets. As the transaction amount increases, so do the associated charges. Safaricom Mpesa users will now have to budget for higher transaction costs, especially higher-value transactions. In addition, Small enterprises that rely on Mpesa for daily operations may face increased operational costs, potentially affecting pricing and profitability. In understanding these changes, users must stay informed about the latest financial trends and how to adapt to these new charges. For further insights into the financial landscape, the Kenya Central Bank’s Consumer Protection Information provides valuable resources.
Other Mpesa Transaction Charges
Now that we have covered the Common Mpesa charges let us look at other Mpesa transaction charges that may affect their overall experience. Here is what you need to know:
- Registration: Signing up for Mpesa is straightforward and, importantly, free of charge. This encourages widespread access to mobile financial services.
- Balance Inquiry: Checking your Mpesa balance is a typical transaction, and users can breathe a sigh of relief knowing this service remains free.
- Airtime Purchase: Buying airtime through Mpesa does not incur any extra fees, a boon for Safaricom customers who frequently top up their talk time.
- PIN Changes: For security reasons, changing your Mpesa PIN is a service that’s also offered at no additional cost.
- These customer-friendly policies help maintain Mpesa‘s position as a leading mobile money service by minimizing the financial burden on its users.
Important Guidelines and Notes
Before you dive into M-PESA transactions, it’s crucial to be aware of the following guidelines and notes:
- The maximum account balance for an M-PESA account is Kshs. 500,000.
- The maximum daily transaction value is Kshs. 500,000, ensuring that you can manage significant financial transactions using M-PESA.
- The minimum amount you can withdraw at an M-PESA agent is Kshs. 50, making it accessible for users with varying financial needs.
- To initiate a self-reversal for a person-to-person M-PESA transaction, send the transaction confirmation to 456.
- To transact using M-PESA, your Safaricom line and M-PESA account must be active.
- It’s essential to deposit funds only into an M-PESA account registered under your identification document (ID). Depositing into third-party accounts is not allowed.
- You can earn Bonga Points from the M-PESA fee charged when you transact, enabling you to enjoy rewards for your financial activities.
- When transacting at any M-PESA agent outlet, ensure that you have your original identification document with you. This document can be your National ID or Kenyan Passport, providing security and verification.
- For a comprehensive understanding of application charges, dial *334# or use the M-PESA cost calculator on the My Safaricom App.
How to Minimize Costs with New Mpesa Charges
With the new Mpesa charges, consumers and businesses must adapt to manage their expenses. Here are some strategies:
- For Consumers:
- Practice doing a lot of Bulk transactions to reduce the frequency and, consequently, fees.
- Utilize free services for balance checks and airtime purchases.
- Plan withdrawals to avoid multiple transaction charges.
- For Businesses:
- Encourage customers to pay in exact amounts to minimize the need for change and additional transactions.
- Consider the transaction costs when setting prices to ensure profitability.
Using these tactics, users can navigate the new tariff landscape more effectively.
Conclusion
The new Mpesa charges for 2024, while presenting challenges, also offer an opportunity for users and businesses to rethink and optimize their financial practices. By staying informed and strategically adapting, the Mpesa community can continue to thrive in Kenya’s vibrant economy. In case of any inquiry regarding the article topic, do not hesitate to contact us via the comment section below.
