M-Pesa Tariff Changes 2026: What the New Charges Mean for Your Business

Safaricom's latest M-Pesa tariff adjustments have landed, and if you run a business in Kenya, the changes affect your bottom line directly. The new fee structure, which came into effect in 2026, reshapes how much you'll pay for withdrawals, transfers, and merchant transactions. Understanding these charges isn't optional—it's essential for accurate cash flow forecasting.

The M-Pesa tariff changes 2026 reflect a shift in how Safaricom prices its mobile money service. For most businesses, the biggest impact comes from withdrawal fees, which now scale differently depending on the amount. A withdrawal of KSh 100 to KSh 500 now costs KSh 23. Move up to KSh 501–KSh 1,000, and you're paying KSh 28. Above KSh 1,000, the fee structure climbs steeply.

For merchant transactions—the lifeblood of retail and service businesses—the rates have shifted too. If you accept M-Pesa payments from customers, you'll notice the commission structure has adjusted. Merchants now pay between 1.5% and 2.5% depending on transaction volume, down from previous tiers. This matters more if you operate a shop, restaurant, or salon that processes hundreds of M-Pesa payments weekly.

What Changed and Why It Matters to You

Person-to-person transfers remain relatively stable, but the real cost increases appear in the withdrawal fees. If you're a trader who pulls out cash daily, the cumulative effect is noticeable. Over a month, a business withdrawing KSh 5,000 daily faces approximately KSh 840 in fees alone—money that could have gone to stock or operational costs.

The tariff revision also affects sending money internationally through M-Pesa Global. International transfer fees have inched upward, which hits freelancers and businesses receiving payments from abroad harder than purely domestic operations.

Your business structure matters here. If you operate as a sole trader without formal business registration, you might face daily withdrawal limits that force you into multiple transactions—and multiple fees. Registering your business through business setup experts can sometimes unlock higher daily limits and potentially better merchant rates, though this varies based on your business classification.

Practical Steps to Reduce the Impact

First, audit your current M-Pesa usage. Track how much you withdraw, transfer, and receive weekly. Use the M-Pesa app's statement feature or request a detailed report directly from Safaricom to see exact fee patterns. This data reveals whether switching your payment method—perhaps using bank transfers for bulk payments—makes financial sense.

Consider consolidating withdrawals. Instead of pulling cash daily, withdraw three or four times weekly. One KSh 15,000 withdrawal costs KSh 54, but five KSh 3,000 withdrawals cost KSh 115. The math isn't complicated, but it requires discipline.

For businesses processing merchant transactions regularly, negotiate your rate directly with Safaricom's business team. High-volume merchants sometimes access tiered discounts unavailable to casual users. If you're unsure how to approach this, find a verified Kenyan expert on Kaziiko who specializes in merchant services optimization.

Keep detailed records of all M-Pesa fees for tax purposes. The Kenya Revenue Authority (KRA) increasingly scrutinizes business expenses, and documented transaction costs strengthen your compliance posture when filing through itax.kra.go.ke.

Frequently Asked Questions

Which withdrawal amounts are most affected by the 2026 tariff changes?

Withdrawals above KSh 10,000 see the steepest fee increases. A KSh 50,000 withdrawal now costs significantly more than before. Small, frequent withdrawals under KSh 1,000 are relatively stable, but they incur higher cumulative costs if done daily.

Do M-Pesa tariff changes apply to business accounts differently?

Business M-Pesa accounts may have different tier structures than personal accounts, particularly for merchant transactions. Check safaricom.co.ke for your specific business account classification, or contact their business support team directly for clarity on your rates.

Can I appeal a higher M-Pesa fee or negotiate rates?

High-volume merchants can request rate reviews. Personal users cannot negotiate, but businesses with consistent large transactions should contact Safaricom's B2B team. Response times vary, and approvals depend on your transaction history and business classification.

Are there alternatives to M-Pesa for reducing transaction costs?

Bank transfers, mobile banking apps, and other money services may offer lower fees for specific transaction types. Compare costs based on your actual usage patterns before switching entirely—M-Pesa's speed and accessibility still make it valuable despite higher fees.