How to Start M-pesa Business in Kenya

Last updated on March 2nd, 2024 at 05:44 pm

Starting an M-pesa business in Kenya is not only an opportunity to make a lot of money, but also a great way to provide a valuable service to the people of the country.

M-pesa is the mobile money platform of the Kenyan telco Safaricom, the biggest mobile money provider in Africa.

Thanks to Safaricom’s pioneering of the mobile money platform, M-pesa is now a household name in Kenya. With over 23 million active users, M-pesa boasts a customer base that is larger than the population of some countries.

In addition to its current success, M-pesa is expected to grow even more as the country continues to develop and more people gain access to mobile phones.

If you’re interested in starting an M-pesa business in Kenya, there are a few steps you need to take;

How to Start M-pesa Business in Kenya

You need to have a registered business
Access Mpesa terminals
Train your staff
Set up your M-pesa Shop in a busy location
Cost to Start an M-pesa Business in Kenya
Requirements to Start M-pesa Business in Kenya

You need to have a registered business

First, you need to register a business with the Kenyan government. This will require you to pay the applicable fees and provide supporting documentation.

Once you’ve done that, you need to get a Safaricom M-pesa dealer account. This will allow you to transact with M-pesa users and access the network.

Access Mpesa terminals

After you’ve completed the registration process, you will then need to purchase M-pesa terminals. These terminals act as the customer-facing interface for M-pesa transactions and also facilitate the withdrawal of cash. You will also need to buy mobile phones so that you can access the M-pesa system.

Train your staff

Once your M-pesa business is all set up, you will need to train your staff and make sure they understand how the platform works. This will help them better serve your customers and ensure that they get the most out of the service.

Set up your M-pesa Shop in a busy location

Finally, you will need to set up an M-pesa shop. This shop should be easily accessible and should have a customer service center that can offer guidance and support to your customers.

Cost to Start an M-pesa Business in Kenya

The cost to start an M-Pesa business in Kenya depends on the size of the business and the services provided. Generally, the cost of registering an M-Pesa business can range from Kshs 25,000 to Kshs 200,000. This cost includes the registration fees, the cost of equipment, and the cost of any other services needed.

Starting an M-pesa business in Kenya can be a great way to make a lot of money and provide a valuable service to the people of the country. By following the above steps, you can ensure that your M-pesa business is set up and running smoothly and is able to offer the best customer service.

Requirements to Start M-pesa Business in Kenya

To become an m-pesa service provider, there are a few requirements you’ll need to meet. You’ll need to have a registered company in Kenya, a valid National ID or passport, and you’ll have to submit a valid KRA PIN. You’ll also need to have a bank account that is registered with m-pesa.

Once these steps are complete, you’ll need to create a m-pesa Business-to-Business (B2B) account. This is required for businesses that want to integrate m-pesa into their existing systems. After your B2B account is set up, you’ll be able to integrate m-pesa into your systems and start accepting payments via m-pesa.

Finally, you’ll need to submit an application to Safaricom. Once your application is approved, you’ll be able to receive payments and make transactions with your m-pesa account.

How do M-pesa agents make money?

As it stands, M-Pesa agents make money through the commissions they receive for facilitating M-Pesa transactions. Agents typically earn commissions on each transaction they make on behalf of customers. The specific amount of the commission typically varies depending on the transaction size.

For example, for sending a certain amount of money, the agent may receive a certain percentage of the transaction.

In addition to commissions, M-Pesa agents can also benefit from additional services such as money collection, customer support, and customer loyalty programs.

Additionally, many M-Pesa agents also offer other services related to banking and finance, such as offering loans and insurance to customers.

Overall, the amount of money M-Pesa agents make can depend on the size and volume of the transactions they facilitate.

As a general rule, the more transactions they facilitate, the more they can earn.

In addition to their commissions, M-Pesa agents can also benefit from the additional services they offer, enabling them to make a larger profit.

Ultimately, the amount of money M-Pesa agents can make depends on the number of transactions they process and the services they provide.

Is M-pesa Business in Kenya Profitable?

Yes, starting an M-pesa Business in Kenya can be a very lucrative venture. It all starts with your choice of location and the services you offer and customer service. Monthly you can earn Ksh. 5000 to Ksh. 150,000 depending on the transactions you make.

I hope you enjoyed my guide on how to start an M-pesa Business in Kenya. But if you’re not if starting an M-pesa Business in Kenya is really profitable then i would recommend an M-pesa agent who has been in M-pesa business for some time.