M-Pesa is a very lucrative business earning its agents chunks of money from all deposit and withdrawal transactions they make. Agents earn money through transactions (deposit and withdrawals), and through registration of new Mpesa customers. Even though the customer does not pay when making a deposit to his/her account, Sasfaricom still pays the agent for that transaction. For withdrawals the customer will pay a fee depending with the amount they are withdrawing.
Mpesa charges are distributed to Safaricom, principal agent and the sub-agent. The agent who is located in a busy strategic location with high traffic of clients ends up pocketing more commission. Safaricom, at the end of the month, pays the commission earned into the MMF account of the Mpesa agent less 5% withholding tax. The agent can decide either to withdraw or transfer the cash to their Mpesa float account.
M-Pesa agent commissions for deposits
Though a customer is not charged when making a deposit, the agent will still earn a certain stipulated commission. Here is the Mpesa agent commission structure for deposit transactions.
Transaction band | Commission | |
Ksh 50 | Ksh 100 | Ksh 4 |
Ksh 101 | Ksh 510 | Ksh 8 |
Ksh 511 | Ksh 1,010 | Ksh 9 |
Ksh 1,011 | Ksh 1,510 | Ksh 10 |
Ksh 1,511 | Ksh 2,510 | Ksh 11 |
Ksh 2,511 | Ksh 3,510 | Ksh 12 |
Ksh 3,511 | Ksh 5,010 | Ksh 14 |
Ksh 5,011 | Ksh 7,510 | Ksh 20 |
Ksh 7,511 | Ksh 10,010 | Ksh 28 |
Ksh 10,011 | Ksh 15,010 | Ksh 40 |
Ksh 15,011 | Ksh 20,020 | Ksh 55 |
Ksh 20,021 | Ksh 25,020 | Ksh 71 |
Ksh 25,021 | Ksh 30,020 | Ksh 87 |
Ksh 30,021 | Ksh 35,020 | Ksh 103 |
Ksh 35,021 | Ksh 40,020 | Ksh 119 |
Ksh 40,021 | Ksh 45,020 | Ksh 135 |
Ksh 45,021 | Ksh 50,020 | Ksh 150 |
Ksh 50,021 | Ksh 60,020 | Ksh 190 |
Ksh 60,021 | Ksh 70,000 | Ksh 190 |
M-Pesa agent commissions for withdrawals
Each time a customer makes a withdrawal transaction, the agent earns a certain stipulated commission. Here is the Mpesa agent commission structure for withdrawal transactions.
Transaction band | Commission (Registered customers) | Commission (Unregistered customers) | |
Ksh 10 | Ksh 49 | N/A | N/A |
Ksh 50 | Ksh 100 | Ksh 5 | N/A |
Ksh 101 | Ksh 500 | Ksh 8 | Ksh 8 |
Ksh 501 | Ksh 1,000 | Ksh 10 | Ksh 10 |
Ksh 1,001 | Ksh 1,500 | Ksh 12 | Ksh 12 |
Ksh 1,501 | Ksh 2,500 | Ksh 15 | Ksh 15 |
Ksh 2,501 | Ksh 3,500 | Ksh 20 | Ksh 20 |
Ksh 3,501 | Ksh 5,000 | Ksh 25 | Ksh 25 |
Ksh 5,001 | Ksh 7,500 | Ksh 30 | Ksh 30 |
Ksh 7,501 | Ksh 10,000 | Ksh 35 | Ksh 35 |
Ksh 10,001 | Ksh 15,000 | Ksh 45 | Ksh 45 |
Ksh 15,001 | Ksh 20,000 | Ksh 60 | Ksh 60 |
Ksh 20,001 | Ksh 25,000 | Ksh 65 | Ksh 65 |
Ksh 25,001 | Ksh 30,000 | Ksh 70 | Ksh 70 |
Ksh 30,001 | Ksh 35,000 | Ksh 70 | Ksh 70 |
Ksh 35,001 | Ksh 40,000 | Ksh 100 | N/A |
Ksh 40,001 | Ksh 45,000 | Ksh 150 | N/A |
Ksh 45,001 | Ksh 50,000 | Ksh 180 | N/A |
Ksh 50,001 | Ksh 70,000 | Ksh 200 | N/A |
Good work Victor! I follow your articles a lot.
Informative