February 28, 2025
The M-Pesa business has become one of the most lucrative ventures in Kenya, enabling entrepreneurs to earn a steady income by providing mobile money transfer and related services.
As the country’s leading mobile money service, M-Pesa provides convenient transactions for millions of Kenyans, making M-Pesa agencies a critical part of everyday life.
This guide provides a comprehensive overview of starting an M-Pesa business, including setup costs, requirements, and tips for success.
Starting an M-Pesa business offers several benefits, namely:
M-Pesa is widely used for transactions, bill payments, and savings, ensuring a steady flow of customers.
M-Pesa agents earn commission on every transaction, providing a consistent source of income.
You can start as a sole agent or expand by opening multiple outlets, depending on your budget and goals.
To become an M-Pesa agent, you must meet Safaricom’s requirements, apply for authorization, and set up your shop.
Below is a comprehensive step-by-step process for starting an M-Pesa venture in Kenya:
Before applying, ensure that you meet Safaricom’s eligibility requirements for starting an M-Pesa business.
Minimal requirements for starting an M-Pesa business in Kenya are:
You must have a registered business. Visit eCitizen to register as a sole proprietor, partnership, or limited company.
Safaricom requires agents to operate in strategic, high-traffic areas that will attract regular M-Pesa transactions.
For sole agents, the minimum float (starting balance) requirement is Ksh 100,000.
For aggregators (those who own multiple M-Pesa outlets), the float requirement is at least Ksh 500,000.
You’ll need copies of your ID, KRA PIN, and business registration documents for verification.
A business bank account is required, as this is where Safaricom deposits commissions earned from transactions.
Once you meet the eligibility criteria, you can start the application process by reaching out to Safaricom.
Go to any official Safaricom shop or the head office and request an application form for an M-Pesa agency.
Provide copies of the following:
Fill out the application form with accurate information and submit it with the required documents. Safaricom will then review your application.
Choosing the right location is essential to the success of your M-Pesa business.
Here are some factors to consider when selecting your shop location:
Position your M-Pesa shop near high-traffic zones like marketplaces, shopping centers, bus terminals, or educational institutions.
Ensure your location is easily accessible for customers and has clear signage.
M-Pesa shops handle cash, so security is crucial. Consider locations with security measures such as CCTV cameras, secure counters, or a nearby police presence.
Once your application is approved, it’s time to set up your M-Pesa shop to attract and serve customers effectively.
Use Safaricom-branded signage to clearly indicate that you offer M-Pesa services.
Consider adding secure counters, safes, and if possible, CCTV cameras to enhance security.
Safaricom will provide guidelines on managing your float (available cash for deposits and withdrawals) to ensure you’re always able to serve customers.
The float is the cash balance you maintain for transactions. Effective float management is key to providing seamless services.
Always have enough float to handle customer withdrawals and deposits throughout the day.
Replenish your float as needed, based on daily transaction volumes. You can top up your float by depositing funds at a Safaricom-authorized bank.
Track daily transactions and float requirements to avoid running low during peak hours.
M-Pesa agents earn commissions from every transaction, which is deposited into your business bank account by Safaricom.
Here’s how you earn commission from operating an M-Pesa business in Kenya:
Agents earn a percentage of each withdrawal transaction based on the amount. Higher-value transactions often yield higher commissions.
Safaricom also offers a fixed commission for deposit transactions.
Commissions are typically calculated monthly, allowing agents to estimate earnings based on transaction volume.
Starting an M-Pesa business involves initial setup costs and ongoing expenses, but the revenue potential is attractive.
Below are estimated setup costs when starting an M-Pesa venture:
Approximately Ksh 1,000–2,000 via eCitizen.
Ksh 100,000 (sole agent) to Ksh 500,000 (aggregator).
Signage, security measures, and branding may cost around Ksh 10,000–50,000.
Rent, employee wages, and utilities will vary based on location.
On average, M-Pesa agents can earn between Ksh 20,000 and Ksh 100,000 per month based on transaction volume, location, and the number of services provided.
Agents in high-traffic areas with multiple outlets have the potential to earn higher monthly income.
With frequent cash transactions, ensuring security is essential. Invest in secure counters, safes, and surveillance if possible.
Friendly and efficient service builds customer loyalty, increasing your chances of repeat business.
Regularly monitor your float and replenish as needed, particularly before busy times like weekends or holidays.
If possible, offer other services, such as airtime sales or utility bill payments, to attract more customers and increase earnings.
Track your daily transactions, commissions, and expenses to measure profitability and identify areas for improvement.
The process can take several weeks, depending on Safaricom’s review process and your preparedness with required documents.
Yes, as an aggregator, you can own and operate multiple M-Pesa outlets. However, each outlet requires its own float and must meet Safaricom’s setup criteria.
Risks include theft, fraud, and low transaction volume in areas with low traffic. Securing your premises and managing float properly can mitigate these risks.
Yes, some agents operate for multiple providers (e.g., Airtel Money and Telkom T-Kash), but each provider has its own requirements, and you’ll need separate applications and float balances.
Starting an M-Pesa business in Kenya is a profitable venture for entrepreneurs who meet Safaricom’s requirements and manage their business effectively.
By following these steps, selecting a strategic location, and providing excellent service, you can build a successful M-Pesa agency that provides essential services to your community while generating consistent income.
With proper setup and management, your M-Pesa business can become a rewarding and valuable part of Kenya’s mobile money ecosystem.