Everything You Need To Start An Mpesa Business In Kenya

Mpesa Business In Kenya

In a time when digital technology has become a thing in Africa, one of the easiest ways people have chosen to make financial transactions in Kenya is through a mobile-based money transfer service.

Through this transfer service, they get to transact business, pay for goods and services, and as well send and receive money.

So if you are interested in starting a business in Kenya, then you might want to consider the Mpesa business. Launched by Safaricom in 2007, this mobile-based money transfer service has many people who have subscribed to it.

And opening a shop where you offer transfer services to Kenyans will be a good way to make a steady income.

Meanwhile, you can operate the Mpesa business as an aggregator who receives payment directly from Safaricom or as a sub-agent who works under an aggregator and earns an 80% commission from Safaricom.

Without delay, in this article, we have provided everything you need to know about the Mpesa business in Kenya and how it works.

How Profitable Is M-pesa Business In Kenya?

In Kenya, the m-pesa business is quite profitable. This is solely dependent on your location. With a good location, you can make between Ksh 1500 to Ksh 4000 daily, and at the end of the month, you can make at least Ksh 45,000 to Ksh 120,000.

The number of people patronizing m-pesa agents to carry out financial transactions is increasing day by day even without any form of marketing. And even with the high number of m-pesa agents opening more shops, the m-pesa business in Kenya remains profitable.

How Does An Mpesa Agent Earn?

M-pesa agents earn through the service charge they charge customers when they withdraw or perform transactions. Also, the m-pesa agent earns a commission through the transactions they have performed. So the higher the transaction the higher the commission.

How Much Do Mpesa Agents Earn Per Month?

Just like we said before with a good location, m-pesa agents earn between Ksh 45,000 to Ksh 120,000 monthly.

However, on average, or as a new m-pesa agent, you are likely to earn between Ksh 20,000 to Ksh 45,000 per month.

What Are The Challenges Of Mpesa Business In Kenya?

If you are planning to start an m-pesa business in Kenya, it’s important to know the challenges of the business and overcome them through careful planning and taking security measures.

However, here are the challenges of running an M-pesa business:

1. Running an m-pesa business comes with a risk of fraudulent activities which may lead to financial losses.

2. Almost every area now has m-pesa shops which makes the competition to be high.

3. The rules and regulations can be so complex.

4. Starting capital can be a challenge since m-pesa business requires high startup capital.

What Are The Mistakes To Avoid While Running An Mpesa Business In Kenya?

Here are mistakes to avoid while running an M-pesa business in Kenya:

1. Not Asking For Identification Documents: Ensure your client provides you with an original identification document, either an identity card or a passport, and make sure to check whether the names match.

2. Lack Of Trained Staff: Avoid the mistake of not training your staff well on how to operate the M-PESA.

3. Carelessness: One must be careful when it comes to running an m-pesa business. You have to keep your phone and money safe to avoid theft.

4. Attend to customers one after the order so that you can be observant in the environment.

5. If possible install security cameras in your business premises. This has a way of scaring fraudsters away.

6. Before you initiate any transaction ensure to confirm the money first.

What Are The Requirements For Starting An Mpesa Business In Kenya?

Starting an m-pesa business in Kenya involves meeting several requirements and these requirements are as follows:

1. Your m-pesa business must be registered under a registered company. The company must have been operating for at least 6 months.

2. At least, you should have a minimum of three outlets that are operating under a registered limited company.

3. You will need to deposit a float of 100,000 and you must make sure you maintain the same amount at all outlets.

4. Also you will have to ensure that you operate this m-pesa business in different counties.

5. Most importantly, you must provide Safaricom with business permits for every outlet to get an m-pesa line, police clearance certificate, VAT and tax certificate, and a banking license which you will get from a reputable financial institution.

6. Finally, you now need to fill out the m-pesa agent head office application form and the m-pesa agent store application form.

Understanding and fulfilling all these requirements are paramount for your m-pesa business journey. However, prepare all the necessary documentation and start the application process.

How Much Does It Cost To Start An Mpesa Business In Kenya?

According to our research, you will need at least Ksh 500,000 to start an m-pesa business in Kenya. This doesn’t mean that you can’t start with lower capital.

Moreover, if you are starting as a sub-dealer, you will need at least Ksh 100,000 to get started but you will be working under a registered m-pesa agent, and thereby you will be paying them a commission for using their line.

What Are The Most Profitable Locations For An Mpesa Business In Kenya?

Locations are very vital when it comes to maximizing profit in the m-pesa business. However, below are some of the most profitable areas for an m-pesa business in Kenya:

1. Malls
2. Post offices
3. Markets
4. Supermarkets
5. Beside filling stations
6. Student areas
7. Beside parks offices pharmacies and eateries
8. Commercial districts
9. Junctions
10. Under banked regions, etc

How Do I Start An Mpesa Business In Kenya?

Here are key steps on how you can start an m-pesa business:

1. Conduct Good Market Research: To start an m-pesa business in Kenya, it is very important to conduct good market research. With this research, you will understand every area of the business, its requirements, how it operates, and potential challenges.

Take your time and approach other m-pesa agents, establish a business relationship with them, and learn from them on how to get started.

They will surely enlighten and guide you through the business.

2. Choose How To Run Your Mpesa Business: There are two major ways of starting an m-pesa business. Either you start as an m-pesa agent/aggregator or you start as a sub-agent. Now below are their differences:

Mpesa Agent/Aggregator: To become an m-pesa agent/aggregator you have to go through various requirements and processes to be registered as an agent.

We mentioned above the requirement for starting an m-pesa business in Kenya. However, it is this category of agents that are expected to meet those requirements.

Sub-Agent: Becoming an m-pesa sub-agent is less expensive and simpler than the standard m-pesa agent.

Meanwhile, in this aspect of m-pesa’s business, you need to work under a licensed agent. You will achieve this by buying their m-pesa line and then paying them a commission for using their lines.

3. Choose A Good Location: A good location is very important for your business success. We have already mentioned the most profitable locations to site your m-pesa business.

However, let’s list them again. You will need a good location like malls, markets, post offices, parks, universities, etc.

4. Market Yourself: Effective marketing is important for attracting and growing your customer base. You can start by offering exceptional customer service and using word of mouth to grow your business.


Mpesa business in Kenya is one of the fastest-moving businesses and when utilized well, it will be a wonderful source of income for you.

It is a worthwhile business due to its satisfactory services in society.

Though this business is capital-intensive, still, it is highly profitable.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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