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New M-Pesa Transaction Charges 2024

By Oluchukwu Ikemefuna

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Recent news that has been making waves earlier this year has it that M-Pesa transaction charges were changed.

M-Pesa is a mobile money transfer service that has been an integral part of Kenya’s financial landscape since its inception.

As a service that has revolutionized the accessibility of financial services, any changes in its transaction charges are crucial to understand.

In this piece, we’ll be reviewing all need to know about this recent changes and the new M-Pesa charges.

What is M-Pesa?

M-Pesa stands for “Mobile Money” (M for “mobile” and “Pesa” means money in Swahili). It was launched in Kenya in 2007 as a joint venture between Vodafone and Safaricom (a leading Kenyan mobile network operator, part of the Vodafone Group).

The service was initially developed by Nick Hughes and Susie Lonie, and it is aimed to provide financial services to the unbanked and underbanked populations of Kenya.

The success of M-Pesa in Kenya has led to its expansion across Africa and into other regions of the world. As of 2022, M-Pesa is also available in Tanzania, Ghana, Egypt, Lesotho, DRC, Mozambique, India, Romania, Albania, and Afghanistan.

How does M-Pesa work?

M-Pesa works by enabling users to deposit, withdraw, transfer money, pay bills, and purchase goods and services through a mobile phone. 

Users must register with a valid ID and create an M-Pesa account, which they then link to their mobile phone number to use M-pesa.

Its users can deposit cash into their M-Pesa account at any M-Pesa agent (such as a local shop or retailer) and withdraw cash from their M-Pesa account at any M-Pesa agent or ATM.

M-Pesa is a cashless system, meaning that users can store money in their M-Pesa account and use it to make payments and transactions without the need for physical cash. 

Its users can also send money to other M-Pesa users, pay bills, and purchase goods and services from

M-Pesa merchants using their mobile phones. The system processes transactions instantly, and it sends a confirmation SMS for each transaction to users.

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What is Its Impact on Kenya’s Finance Sector?

M-Pesa has had a significant impact on financial inclusion in Kenya and other countries where it operates.

The company has made it easier for people without access to traditional banking services to access financial services by providing a mobile-based platform for transactions.

It has also made it easier for people living in rural areas to access financial services, as M-Pesa agents are often located in rural areas where traditional banks are not present.

M-Pesa has also made it easier for people to send money to family and friends, pay bills, and purchase goods and services, which has helped to drive economic growth and development.

The platform has also enabled businesses to accept payments from customers through M-Pesa, which has helped to, increase business revenue and create jobs.

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What are the New M-Pesa Transaction Charges?

The costs a customer has to pay vary according to the transaction amount and type. Sending money from one Safaricom number to another within the M-Pesa network is less expensive than sending it to other registered mobile networks like Airtel and Telkom.

The M-PESA service allows for a wide range of transaction amounts, from as little as 1 KSHS to as high as 250,000 KSHS.

Below are the updated transaction fees M-Pesa transaction charges:

Transfer to M-PESA Users, Pochi La Biashara, and Business Till to Customer

  • 1-49 KSHS: 

No M-Pesa charge is levied, making it a cost-free transaction for the customer.

  • 50-100 KSHS:

This remains a charge-free transaction, ensuring convenience for customers sending small amounts.

  • 101-500 KSHS: 

The service charges a nominal M-Pesa fee of 7 KSHS, which is significantly less than the amount being transferred.

  • 501-1,000 KSHS: 

The M-pesa transaction charge increases slightly to 13 KSHS, still maintaining a reasonable fee structure.

  • 1,001-1,500 KSHS: 

The company applies a charge of 23 KSHS for this transaction range, which is proportional to the amount being transferred.

  • 1,501-2,500 KSHS: 

A charge of 33 KSHS is applied, which is in line with the progressive fee structure.

  • 2,501-3,500 KSHS:

For this transaction range, a charge of 53 KSHS is applied, reflecting a slight increase in fees.

  • 3,501-5,000 KSHS: 

The fee increases to 57 KSHS for this higher transaction range.

  • 5,001-7,500 KSHS: 

The bank applies a charge of 78 KSHS, which is still considered reasonable given the higher amount being transferred.

  • 7,501-10,000 KSHS: 

For transactions in this range, they apply a charge of 90 KSHS, reflecting the increased value being transferred.

  • 10,001-15,000 KSHS: 

A charge of 100 KSHS is levied for this transaction range.

  • 15,001-20,000 KSHS:

 In this range, they charge 105 KSHS, reflecting a proportional fee structure for transactions.

  • 20,001-35,000 KSHS:

An M-Pesa charge of 108 KSHS is applied for this transaction range. This is still considered reasonable given the amount being transferred.

  • 35,001-50,000 KSHS: 

The fee remains the same at 108 KSHS for this higher transaction range.

  • 50,001-250,000 KSHS: 

A charge of 108 KSHS is applied, reflecting a flat fee structure for transactions over 50,000 KSHS.

M-Pesa Charge when Transferring to Other Registered Mobile Money Users

A flat fee of 29 KSHS is applied, ensuring that all customers sending money to other mobile money users incur the same charge.

Also note that KSHS means Kenyan Shilling.

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M-Pesa Transaction Charge when Withdrawing from M-PESA Agent

  • 1-100 KSHS: 

No charge is applied, ensuring that customers can withdraw small amounts without incurring any fees.

  • 101-500 KSHS:

For transactions in this range, a charge of 11 KSHS is applied, which is still considered reasonable given the amount being withdrawn.

  • 501-1,000 KSHS:

The fee increases to 29 KSHS for this transaction range.

  • 1,001-1,500 KSHS: 

A charge of 29 KSHS is applied for this higher transaction range.

  • 1,501-2,500 KSHS: 

The fee increases to 29 KSHS for this transaction range, reflecting a proportional fee structure.

  • 2,501-3,500 KSHS: 

For transactions in this range, a charge of 52 KSHS is applied, reflecting the increased value being withdrawn.

  • 3,501-5,000 KSHS: 

A charge of 69 KSHS is applied for this transaction range, which is still considered reasonable given the amount being withdrawn.

  • 5,001-7,500 KSHS: 

A charge of 87 KSHS is applied for a transaction of this range. This reflects the increased value being withdrawn.

  • 7,501-10,000 KSHS: 

An M-Pesa charge of 115 KSHS is applied for this higher transaction range.

  • 10,001-15,000 KSHS

For transactions in this range, a charge of 167 KSHS is applied, reflecting the increased value being withdrawn.

  • 15,001-20,000 KSHS: 

A charge of 185 KSHS is applied for this transaction range, which is still considered reasonable given the amount being withdrawn.

  • 20,001-35,000 KSHS: 

For transactions in this range, a charge of 197 KSHS is applied, reflecting a proportional fee structure.

  • 35,001-50,000 KSHS:

A charge of 278 KSHS is applied for this transaction range, which is still considered reasonable given the amount being withdrawn.

  • 50,001-250,000 KSHS:

For transactions in this range, a charge of 309 KSHS is applied, reflecting the increased value being withdrawn.

These charges are designed to be reasonable and proportionate to the transaction amount, ensuring that customers are not unduly burdened when using the M-PESA service. It is important for customers to be aware of these charges and to plan their transactions accordingly.

M-Pesa Transaction Charge when Using an ATM

Using an ATM card  to take out cash comes with charges based on how much you withdraw. 

If you withdraw between 200 Kshs to 2500 Kshs, you’ll be charged 35 Kshs. If you take out between 2501 Kshs to 5000 Kshs, the M-Pesa charge is 69 Kshs. 

For amounts between 5001 Kshs to 10000 Kshs, the fee is 115 Kshs. And if you withdraw between 10001 Kshs to 35000 Kshs, you’ll be charged 203 Kshs. 

Other transactions like depositing money, registering for M-PESA, buying airtime, checking your M-PESA balance, and changing your M-PESA PIN are free of charge.

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What are the Implications of this Change in M-Pesa Transaction Charge?

These changes have several implications for M-Pesa users. Users will now be able to make smaller transactions more affordably, as the minimum charge has been reduced to Ksh 10.

This will make the service more accessible to low-income earners and small businesses.

The maximum charge for transactions has been capped at Ksh 300, which will prevent excessive fees for larger transactions. This will provide greater transparency and predictability for users.

Lastly, the increase in transaction limits will allow users to make larger transactions more conveniently. This will benefit businesses and individuals who need to make large payments or purchases.

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Important Things to note Concerning M-Pesa Transaction Charge Change.

  • The highest amount of money you can have in your M-PESA account at any one time is Kshs.500,000.
  • The most you can send or receive in one day is also Kshs.500,000.
  • The most you can send or receive in a single transaction is Kshs.250,000.
  • You cannot withdraw less than KShs. 50 when you go to an M-PESA agent to get money.
  • If you need to reverse a transaction you made with M-PESA, you can do it by sending the transaction confirmation to the number 456.
  • You can’t put money directly into another person’s M-PESA account at an agent outlet.
  • You can only use Kenyan Passports and National IDs to register at Agent outlets. If you have a Foreign Passport, Military ID, or Foreigner Certificate, you need to go to a Safaricom Shop or Care Desk to register.
  • When you want to deposit or withdraw money, you need to have one of the following documents: Kenyan Passport, National ID, Foreign Passport, Military ID, or Foreigner Certificate.
  • If you have any questions, complaints, or need help, you can call the customer support line by dialing 100 for PrePay customers, 200 for PostPay customers, or *234# for self-service.You can also send an email to customercare@Safaricom.co.ke or chat with them on social media.

FAQs

What are the new transaction charges for M-Pesa in 2024?

The new transaction charges for M-Pesa in 2024 are as follows:
– Deposit charges: 1% of the amount deposited, with a minimum charge of Ksh 10 and a maximum charge of Ksh 300.
– Withdrawal charges: 1% of the amount withdrawn, with a minimum charge of Ksh 10 and a maximum charge of Ksh 300.
– Transfer charges: 1% of the amount transferred, with a minimum charge of Ksh 10 and a maximum charge of Ksh 300.

Are bill payments and purchases still free?

Yes, bill payments and purchases will continue to be free of charge.

What are the new transaction limits for M-Pesa in 2024?

The new transaction limits for M-Pesa in 2024 are as follows:
– Maximum daily limit: Ksh 300,000.
– Maximum monthly limit: Ksh 1,000,000.

How do the new charges affect small transactions?

The new charges make smaller transactions more affordable, with a reduced minimum charge of Ksh 10. This makes the service more accessible to low-income earners and small businesses.

Will the new charges affect larger transactions?

The new charges cap the maximum charge for transactions at Ksh 300, which prevents excessive fees for larger transactions. This provides greater transparency and predictability for users.

What is the aim of the new transaction charges?

The aim of the new transaction charges is to improve the efficiency of the service and ensure its long-term sustainability.

When do the new transaction charges come into effect?

The new transaction charges came into effect on January 1, 2024.

Where can I find more information about the new transaction charges?

You can find more information about the new transaction charges on the official M-Pesa website or by contacting Safaricom.

Conclusion

The new M-Pesa transaction charges for 2024 reflect the evolving financial landscape in Kenya. These changes are designed to make the service more affordable, transparent, and convenient for users. 

As M-Pesa continues to play a vital role in Kenya’s financial ecosystem, these changes are a step towards ensuring its long-term sustainability. 

Whether you are a small business owner, an individual, or a frequent M-Pesa user, these new transaction charges aim to make your financial transactions smoother and more cost-effective.

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Blessing Ukibe
Blessing Ukibe

Medical Student at Nnamdi Azikiwe University|Tech content expert at Silicon Africa Technology|Lover of fun books and fun fun ☺️

Articles: 90

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