Safaricom has introduced new M-PESA charges effective August 7, 2026. Learn about the reduced Pochi la Biashara, Buy Goods, Business Till transfer charges, and the unchanged Send Money, ATM, and Agent withdrawal fees.
New M-PESA Charges From August 2026
Safaricom has announced a new M-PESA tariff review effective August 7, 2026, aimed at reducing transaction costs for businesses across Kenya. The latest changes mainly benefit merchants using Pochi la Biashara, Lipa na M-PESA Buy Goods, and Business Till accounts.
The move is expected to encourage more digital payments while lowering operating costs for thousands of small businesses, kiosks, online sellers, and informal traders who rely on M-PESA every day.
For ordinary M-PESA users, however, Send Money, Agent Withdrawal, and ATM Withdrawal charges remain unchanged.
This guide explains all the new M-PESA charges effective August 2026 and what they mean for Kenyan businesses and customers.
Summary of the New M-PESA Charges (August 2026)
| Service | What’s New? |
|---|---|
| Pochi la Biashara | Lower transaction fees with free payments up to KSh 200 |
| Buy Goods (Merchant Collections) | Free collections increased from KSh 200 to KSh 500 |
| Business Till Transfers | Transfer charges reduced by up to 50% |
| Send Money | No changes |
| Agent Withdrawals | No changes |
| ATM Withdrawals | No changes |
1. New Pochi la Biashara Charges (Effective August 7, 2026)
Pochi la Biashara is popular among small traders who do not have a traditional Till Number but still want to receive business payments separately from their personal M-PESA account.
Safaricom has significantly reduced the charges.
Updated Pochi la Biashara Charges
| Transaction Amount | New Charge |
|---|---|
| Up to KSh 200 | FREE |
| KSh 201 – 500 | KSh 7 |
| KSh 501 – 2,500 | Reduced charges apply |
| KSh 2,501 – 250,000 | Flat KSh 50 |
Key Benefits
- Payments up to KSh 200 remain free.
- Lower transaction costs for small businesses.
- Maximum fee is now only KSh 50 regardless of large transaction values.
- Easier for informal traders to accept cashless payments.
2. New Lipa na M-PESA Buy Goods Charges
Safaricom has also revised the charges merchants pay when customers make payments through Buy Goods.
The biggest improvement is the increase in the free transaction threshold.
Updated Buy Goods Collection Charges
| Collection Amount | Charge |
|---|---|
| Up to KSh 500 | FREE |
| KSh 501 – 36,363 | 0.55% |
| Above KSh 36,363 | Maximum KSh 200 |
Previously, only payments up to KSh 200 were free.
What This Means
Small businesses receiving many payments below KSh 500 will now save significantly on transaction costs.
Examples include:
- Grocery shops
- Restaurants
- Cafés
- Pharmacies
- Retail stores
- Street vendors
- Online businesses
3. Business Till Transfer Charges Reduced
Safaricom has also lowered the cost of moving money from a Business Till account.
Businesses transferring money from their Till to:
- Mobile numbers
- PayBill accounts
will now enjoy reduced fees of up to 50%.
Example
Previously:
- Transfer above KSh 45,000 = KSh 108
Now:
- Transfer above KSh 45,000 = KSh 54
This is a significant saving for businesses making frequent supplier payments.
Standard M-PESA Charges That Remain Unchanged
Although Safaricom has revised several business-related charges, the normal customer tariffs remain the same.
M-PESA Send Money Charges (2026)
| Amount | Charge |
|---|---|
| Up to KSh 49 | FREE |
| KSh 101 – 500 | KSh 7 |
| Above KSh 20,001 | Maximum KSh 108 |
These charges continue to apply when sending money to another registered M-PESA customer.
M-PESA Agent Withdrawal Charges (2026)
| Withdrawal Amount | Charge |
|---|---|
| KSh 50 – 100 | KSh 11 |
| KSh 101 – 2,500 | KSh 29 |
| KSh 50,001 – 250,000 | KSh 309 |
Agent withdrawal charges remain unchanged.
M-PESA ATM Withdrawal Charges (2026)
| Amount | Charge |
|---|---|
| KSh 200 – 2,500 | KSh 35 |
| KSh 2,501 – 5,000 | Applicable tariff |
| KSh 10,001 – 35,000 | KSh 350 |
ATM withdrawal fees remain the same.
Why Did Safaricom Reduce These Charges?
The revised tariffs are intended to:
- Support Kenyan SMEs and micro-businesses.
- Encourage more cashless payments.
- Reduce the cost of accepting digital payments.
- Increase the adoption of Pochi la Biashara and Buy Goods.
- Make it cheaper for businesses to transfer funds.
These changes align with Kenya’s continued push toward a more inclusive digital economy.
Who Benefits Most?
The new charges are especially beneficial for:
- Small business owners
- Market traders
- Online sellers
- Restaurants
- Retail shops
- Pharmacies
- Freelancers
- Service providers
- Hustlers using Pochi la Biashara
Businesses processing many low-value transactions stand to make the biggest savings.
Tips for Saving More on M-PESA Charges
To reduce transaction costs even further:
- Use Buy Goods instead of requesting customers to send money directly where appropriate.
- Consider Pochi la Biashara if you operate without a Till Number.
- Combine multiple supplier payments where possible.
- Encourage digital payments below the free transaction limits.
- Monitor your business transaction reports regularly.
Frequently Asked Questions (FAQs)
When do the new M-PESA charges take effect?
The revised Safaricom M-PESA tariffs become effective on August 7, 2026.
Has Safaricom reduced Send Money charges?
No. Standard Send Money charges remain unchanged for individual users.
Are Agent Withdrawal charges changing?
No. Withdrawal charges at M-PESA agents remain the same.
Is Buy Goods now free?
Yes, merchant collections of up to KSh 500 are now free. Transactions above KSh 500 attract a fee of 0.55%, capped at KSh 200.
Has Pochi la Biashara become cheaper?
Yes. Payments up to KSh 200 remain free, while larger transactions benefit from lower fees, with a maximum charge of KSh 50.
Who benefits most from these changes?
Small businesses, kiosks, market traders, online sellers, and merchants using M-PESA business services will enjoy lower transaction costs.
Final Verdict
The new M-PESA charges effective August 7, 2026 represent a welcome relief for Kenyan businesses. By reducing fees on Pochi la Biashara, Lipa na M-PESA Buy Goods, and Business Till transfers, Safaricom is making digital payments more affordable and encouraging wider adoption of cashless transactions.
While individual customer charges for Send Money, Agent Withdrawals, and ATM Withdrawals remain unchanged, merchants are set to enjoy meaningful savings—especially those handling numerous low-value transactions. For small businesses looking to cut operating costs, these updated tariffs make M-PESA an even more attractive payment solution.