How to start M-PESA business 2022 guide

How to start M-PESA business 2022 guide – This is the complete and updated guide with all you need to know about how to start M-PESA business in 2022. There are a lot of basic things you should know about starting an M-PESA business in 2022. M-Pesa is a mobile phone-based money transfer service, payments and micro-financing service, launched in 2007 by Vodafone and Safaricom, the largest mobile network operator in Kenya. It has since expanded to Tanzania, Mozambique, DRC, Lesotho, Ghana, Egypt, Afghanistan, and South Africa.

Basic requirements to become an M-pesa Agent

  • Prospective agent must be registered as a LIMITED company or equivalent with at least 3 outlets ready to offer M‐PESA under the company names. The
  • company MUST have traded for a minimum period of 6 months.
  • Proposed outlets shall be audited prior to commencement of business, An agent will be expected to avail a minimum of Kshs. 100,000 per outlet once application is approved
  • Successful agents will be required to deposit this money within one month of signing the contract, failure to which the contract shall be revoked.
  • The agent should preferably employ competent staff with minimum of KCSE to handle the service.
  • An M‐PESA agent must conform to Safaricom branding and merchandising standards. The minimum branding requirements will be supplied to you on commencement of business

Special categories of Agents have been identified who may not have the minimum number of outlets required but would be beneficial to M‐PESA as Agents. These Categories are Banks, Forex Bureaus, Hotels, Major Supermarkets, Petrol Stations, Hospitals, Clinics, Convenience store etc. these agents should have a minimum of 1 outlet and minimum Float balance of Kshs 200,000 in the head office. Organization ready to
avail a minimum of Kshs. 200,000 as capital to run M-PESA Agency business. these category of special agents are offered to;

  • Remote locations
  • Unique operations (Hospitals, petrol stations, hotels)
  • A minimum of one outlet

List of document copies needed to start an M-PESA business

These should be original documents certified by commissioner of oaths should be presented for verification at the time of handing in the application.

  • Certificate of incorporation
  • Form CR12 or an equivalent form valid for the last 3 months
  • Copies of IDs of Directors
  • Business permits for each of the outlet
  • Completed agent application forms
  • Full list of documents needed are listed on application form just pick one from authorized Safaricom dealers

Submission of forged/fake documents in support of agency applications is a criminal offence and Safaricom Reserves the right to reject any application that does not meet the requirements as above and take such other action as may be necessary in respect thereof.

Once you have submitted your forms and met all the requirements you’ll be given a till number that you will use

M-PESA sub – dealer

Operating as an M-pesa sub dealer is much more affordable than registering as an agent. However, you will need to work under a licensed agent by buying their MPESA line and paying them commission for using their lines. For sub dealers, you only need a float of Ksh.20,000 – Ksh. 40,000. It is the work of the agent to provide the sub-agent with a till for transactions. Sub-agents get 80% commission while the agent gets 20%  Sub-agents need to get store management tills used to manage the float. Sub-agents can get them at KCB bank.

The main m-pesa agents receive earnings on behalf of the sub-agents. They then determine how much to pay them. The agents pay sub-agents between 60%-70% commission, while Safaricom requires them to to pay 80% commission. Is m-pesa business profitable? An M-pesa shop is undeniably a profitable business venture and remains attractive since it can be incorporated into other businesses seamlessly the table below shows commission rates paid

M-pesa commission for deposit transaction

Amount (transaction band)Applicable Commission in sh.

Operating as an M-pesa agent in Kenya is more profitable since you will go through the entire registration process. Safaricom pays MPesa agents directly. M-pesa agents are responsible for recruiting sub-agents, helping sub-agents meet operation requirements laid out by Safaricom, and managing several tills.

As you have now understood the process of how to start the M-pesa business you can decide whether to invest highly on being a registered M-pesa agent or become a sub- agent this requires low capital download full list of requirements from safaricom website

You can earn from 10,000 to as much as possible by running an M-PESA business in Kenya.


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