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New M-Pesa Transaction Charges 2024
By Oluchukwu Ikemefuna
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Welcome to Kenya’s world of mobile money services, where Safaricom’s M-Pesa service is a shining example of simplicity and creativity.
Users of M-Pesa are experiencing a dramatic change in the transaction limitations and fee environment as 2024 approaches. Its large user base is becoming curious and asking inquiries in response to this change.
A detailed analysis of the new M-Pesa transaction charges for 2024 is provided in this article. It’s important to comprehend these modifications because they have an immediate impact on how customers interact financially when utilizing this well-known mobile money network. However, why the abrupt shift?
Everything comes full circle to the Finance Act 2023, a landmark piece of legislation that rewrote Kenya’s mobile money services cost structure.
We hope that this extensive explanation will clear up any confusion you may have regarding the new fees and demonstrate how they vary depending on the types and volume of transactions.
Whether you use M-Pesa to pay your bills, use an ATM to get cash, or transfer money to friends, it’s important to understand these new charges.
We’ll also look at how Safaricom has modified its M-Pesa charges and transaction limits to provide you with more flexibility with your regular financial activities.
What is M-Pesa?
With the use of the mobile banking app M-Pesa, customers may save and transfer funds using their phones.
In Kenya, M-Pesa was launched as a substitute method for the populace to obtain financial services. M-Pesa was introduced by Safaricom, Kenya’s biggest cellular provider, in 2007.
It serves the Democratic Republic of the Congo (DRC), Egypt, Ghana, Kenya, Lesotho, Mozambique, and Tanzania and has been a joint venture between Safaricom and Vodacom since 2020.
Financial inclusion is a driving force behind fintech initiatives such as M-Pesa, which primarily target underbanked or unbanked individuals.
In the age of digital banking, financial inclusion aims to provide alternatives for locals who lack access to banks or who cannot afford the necessary minimum deposits. To create a valuable digital platform, several industries must work together to share data in order for this endeavour to be successful.
In sub-Saharan Africa, where the banking and telecommunications industries are collaborating to build mobile banking services for those with limited access to traditional banking, this cross-communication strategy employed by M-Pesa is growing quickly.
Read also: USSD codes for GTB, FCMB, UBA, Access and Fidelity Bank
Understanding M-Pesa
Using a SIM card, M-Pesa is a virtual financial system that offers transaction services. Users can send money to family members and vendors via SMS messages after inserting their SIM card into the mobile device’s card slot.
The many M-Pesa locations spread out over the nation are accessible to users without bank accounts. The kiosk attendant receives the money that needs to be saved and deposits it into the user’s M-Pesa account digitally.
Digitally collected money is kept in a trust account with M-Pesa. The bank accounts work much like standard checking accounts, allowing for the payment of bills, the receipt of deposits, and other activities.
Receipts from M-Pesa serve as transaction proof. Every transaction needs a PIN, and the amount of money deposited or removed from the user’s account is disclosed in full in an SMS notice that is sent to both parties.
The instantaneous receipt via mobile device contributes to transparency for all parties participating in a transaction.
Transactions with free M-Pesa charges
While most M-Pesa transactions involve charges, a few transactions are free of charge. These include:
- All M-Pesa deposits
- M-Pesa registration
- Buying airtime through M-Pesa
- M-Pesa balance inquiry
- Changing M-Pesa PIN
M-Pesa Global
With the help of the M-Pesa Global service, registered users can send and receive money anywhere in the world. With this service, users can send money to millions of bank accounts globally (US, UK, Europe, and UAE), over 500,000 Western Union locations, and East Africa (Uganda, Tanzania, and Rwanda). Online purchasing transactions involving PayPal accounts are also present on M-Pesa Global.
M-Pesa International Fees and Caps
Through M-Pesa Global, the lowest amount that may be sent is KES 101, and the highest amount is KES 70,000. The current forex rates are applicable; nevertheless, M-Pesa Global transactions are free.
The Latest M-Pesa Transaction Charges
| Transaction Amount (Ksh) | Transfer To Registered M-Pesa User (Ksh) | Transfer To Unregistered M-Pesa User (Ksh) | Transfer To Pochi La Biashara or Till Number (Ksh) | M-Pesa Agent Withdrawal (Ksh) | ATM Withdrawal (Ksh) |
| 1 – 49 | 0 | N/A | 0 | N/A | N/A |
| 50-100 | 0 | N/A | 0 | 10 | N/A |
| 101-500 | 6 | 45 | 6 | 27 | 34 |
| 501-1000 | 12 | 49 | 12 | 28 | 34 |
| 1001-1500 | 22 | 59 | 22 | 28 | 34 |
| 1501-2500 | 32 | 74 | 32 | 28 | 34 |
| 2501-3500 | 51 | 112 | 51 | 50 | 67 |
| 3501-5000 | 55 | 135 | 55 | 67 | 67 |
| 5001-7500 | 75 | 166 | 75 | 84 | 112 |
| 7501-10000 | 87 | 205 | 87 | 112 | 112 |
| 10001-15000 | 97 | 265 | 97 | 162 | 197 |
| 15001-20000 | 102 | 286 | 102 | 180 | 197 |
| 20001-35000 | 105 | 305 | 105 | 191 | N/A |
| 35001-50000 | 105 | N/A | 105 | 270 | N/A |
| 50001-150000 | 105 | N/A | 105 | 300 | N/A |
M-Pesa Withdrawal Charges
M-Pesa Withdrawal Charges at an Agent
| Transaction Amount (Ksh) | Withdrawal Charge (Ksh) |
| 1-49 | N/A |
| 50-100 | 10 |
| 101-500 | 27 |
| 501-1000 | 28 |
| 1001-1500 | 28 |
| 1501-2500 | 28 |
| 2501-3500 | 50 |
| 3501-5000 | 67 |
| 5001-7500 | 84 |
| 7501-10000 | 112 |
| 10001-15000 | 162 |
| 15001-20000 | 180 |
| 20001-35000 | 191 |
| 35001-50000 | 270 |
| 50001-150000 | 300 |
M-Pesa Withdrawal Charges at The ATM
| Amount (Ksh) | M-Pesa Charges (Ksh) |
| 200-2500 | 34 |
| 2501-5000 | 67 |
| 5001-10000 | 112 |
| 10001-20000 | 197 |
M-Pesa Charges for Sending Money
When sending money to registered and non-registered M-Pesa users, Safaricom charges differently. Furthermore, the fees associated with sending money to Pochi la Biashara and Business Till are not the same as those associated with sending money directly to individuals.
Let’s talk about your alternatives.
See also: New 2024 SGR online booking with Madaraka Express
M-Pesa Charges for Transferring Money to Users
Consider the table below if you want to transfer money to registered or unregistered M-Pesa users.
| Transaction Amount (Ksh) | Transfer To Registered M-Pesa User (Ksh) | Transfer To Unregistered M-Pesa User (Ksh) |
| 1-49 | 0 | N/A |
| 50-100 | 0 | N/A |
| 101-500 | 6 | 45 |
| 501-1000 | 12 | 49 |
| 1001-1500 | 22 | 59 |
| 1501-2500 | 32 | 74 |
| 2501-3500 | 51 | 112 |
| 3501-5000 | 55 | 135 |
| 5001-7500 | 75 | 166 |
| 7501-10000 | 87 | 205 |
| 10001-15000 | 97 | 265 |
| 15001-20000 | 102 | 286 |
| 20001-35000 | 105 | 305 |
| 35001-50000 | 105 | N/A |
| 50001-150000 | 105 | N/A |
Safaricom M-Pesa Transaction Charges for Pochi la Biashara and Business Till
| Transaction Amount (Ksh) | Transfer To Pochi La Biashara or Till Number (Ksh) |
| 1-49 | 0 |
| 50-100 | 0 |
| 101-500 | 6 |
| 501-1000 | 12 |
| 1001-1500 | 22 |
| 1501-2500 | 32 |
| 2501-3500 | 51 |
| 3501-5000 | 55 |
| 5001-7500 | 75 |
| 7501-10000 | 87 |
| 10001-15000 | 97 |
| 15001-20000 | 102 |
| 20001-35000 | 105 |
| 35001-50000 | 105 |
| 50001-150000 | 105 |
M-Pesa Global Charges
| Amount (Ksh) | M-Pesa Charges (Ksh) |
| 101-5000 | 100 |
| 5001-15000 | 250 |
| 15001-35000 | 350 |
| 35001-70000 | 500 |
Impact of Finance Act 2023 on M Pesa Charges
A new era for Kenya’s mobile money services has begun with the Finance Act 2023, which has a significant effect on M-Pesa transaction costs.
Due to this significant legislative reform in the field of finance, the excise duty on mobile money transfer services has increased from 12% to an impressive 15%.
This rise has a significant impact on how much consumers spend for M-Pesa transactions; it’s more than simply a figure.
It is essential to comprehend the subtleties of these shifts. These are not merely paper amendments; they are real, practical changes that affect millions of people.
When we examine these modifications, it becomes evident that they were required in order for the service to remain successful in a constantly changing economic environment.
Revised Transaction Limits for Enhanced Flexibility
Expanding its transaction limitations is a major step M-Pesa has taken to improve user convenience. The Ksh 500,000 daily transaction limit is a remarkable increase from the previous Ksh 300,000 restriction.
This is a strategic move to give consumers more flexibility in managing larger amounts of money through their M-Pesa accounts, not just a numerical adjustment.
However, as a user, what does this mean for you? Up to half a million Kenyan shillings can now be transacted in a single day. This is particularly advantageous for companies and people who deal with a lot of transactions.
The per-transaction limit is still set at Ksh 150,000 despite this increase, guaranteeing that high-value transactions are watched over and managed for security purposes.
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Additional Transaction-Related Services and Charges
M-Pesa provides a wider range of financial services beyond merely money transfers and withdrawals as part of its dedication to becoming a complete financial partner. Let’s examine a few of these offerings and the costs involved:
- Deposits:
Do you want to top off your M-Pesa account? That is unrestricted. Because of this, consumers can use M-Pesa for their financial needs without being concerned about deposit fees.
- Registration and Balance Enquiry:
You can use the services of checking your balance and opening an M-Pesa account for free. Part of what makes M-Pesa a user-friendly platform is its accessibility.
- Buying Airtime and Changing PIN:
Do you need to change your security information or top up your phone? M-Pesa’s convenience aspect is further enhanced by the fact that these acts are free of charge.
The fact that these basic services are free of charge indicates M-Pesa’s commitment to offering a comprehensive financial solution that goes beyond simple transactional features.
You can make the most of M-Pesa and improve the effectiveness and cost-effectiveness of your financial management by being aware of these aspects of the service.
Navigating the New M-Pesa Landscape
Strategic Adjustments by Safaricom
The company that created M-Pesa, Safaricom, has made deliberate and intentional modifications rather than just haphazard ones.
Safaricom wants to strike a compromise between two important factors: improving the user experience and preserving financial sustainability. To that end, it is updating the M-Pesa prices and limits.
This careful balancing act demonstrates their dedication to meeting the needs of their clients while adjusting to the always-shifting financial situation.
The modifications are the result of a thorough analysis of consumer behaviour and market demands.
Safaricom M-Pesa is leading the way as financial transactions move more and more to digital platforms, developing to take advantage of these new possibilities and problems.
Reacting to legislative changes and maintaining an advantage in a cutthroat market are the goals of this proactive strategy.
Tips for Adapting to the New M-Pesa Charges
Planning and some strategy are points to consider to adjust to the new M-Pesa fees. The following useful advice will assist you in adjusting to these changes:
1. Recognize the Fees:
Learn about the specific charges associated with each type of transaction. You can better organise your finances if you are aware of the precise costs associated with sending and receiving money as well as other services.
2. Optimize Transaction Limits:
Arrange your transactions to take full advantage of the higher daily limit. This is especially helpful for larger transactions, as you can spread them out over a shorter period of time.
3. Take Advantage of Free Services:
Make use of M-Pesa’s free services, such as airtime purchases, balance queries, and account deposits. This improves your overall platform experience and saves money.
4. Benefits of Registration:
If you are not yet registered, you should think about doing so. Because registered customers pay less for transactions, this is a wise financial decision.
Frequently Asked Questions
How Can I Stay Away From M-Pesa Fees?
There are several strategies for avoiding expensive M-Pesa fees. Among them are:
- Take out a lot of money.
- Purchase with cash
- Change to a mobile bank.
- Bulk transfer to M-Pesa
What Is The M-Pesa Transaction Minimum?
With M-Pesa, a transaction must be at least Ksh 1. Any registered M-Pesa user can receive a Ksh 1 transfer. However, Ksh 50 is the minimal amount you can withdraw when it comes to withdrawals.
How Much Does M-Pesa Charge to Withdraw 200?
It currently costs Ksh 27 to withdraw Ksh 200 at an M-Pesa agent and Ksh 34 at an ATM.
How Much Does It Cost to Withdraw 100 from M-Pesa?
It costs Ksh 28 to withdraw Ksh 1,000 from an M-Pesa agent and Ksh 34 from an ATM agent.
How Much Does It Cost to Withdraw 2,500 from M-Pesa?
It currently costs Ksh 28 to withdraw Ksh 2500 at an M-Pesa agent and Ksh 34 at the ATM.
How Much Does Equity Charge to M-Pesa 2024?
Equity transactions have attracted a 20% excise duty since January 1st, 2024.
Final Thoughts
The M-Pesa charges and limit adjustments for 2024 signify a substantial transformation in the mobile money market, going beyond simple upgrades.
In this area, Safaricom’s M-Pesa is still essential since it strikes a balance between user ease and operational sustainability.
These modifications show a forward mindset and guarantee that M-Pesa will continue to be a dependable and effective service for millions of customers.
Although adjusting to these changes might be necessary, being proactive and knowledgeable can help you incorporate these modifications into your financial routine with ease.
You can make the most of your M-Pesa experience thanks to the updated M-Pesa charges and higher transaction limits, which present fresh possibilities and freedom.
Kenyans may now send and receive money using the innovative mobile payment system M-Pesa. Due to its affordability, affordability, and convenience, the service is well-liked by both individuals and companies.
Using M-Pesa has some fees, but these are usually extremely affordable.
Kenya is now a global leader in mobile payments because of this service, which has also encouraged other nations to implement comparable systems. The success of M-Pesa has contributed to the growth of other technological advancements in the Fintech sector.
M-Pesa has unquestionably had a good impact on Kenya, and other developing nations can learn from its success story.
