Safaricom slashes M-PESA merchant fees for Kenyan small businesses

Safaricom Plc announced a reduction in fees for three M-PESA services that target small traders in Kenya. From 1 August 2026, payments to the Pochi la Biashara business wallet are free up to KES 200 and cost a flat KES 50 for amounts above KES 2,500, replacing the previous tiered charge that could reach KES 108. The fee change applies for a 90‑day promotional period ending 31 October 2026.

The Lipa na M‑PESA Buy Goods service will also see higher free‑collection limits, with merchant collections up to KES 500 becoming free and the 0.55 % charge (capped at KES 200) applying only to larger amounts. M‑PESA Business Till transfers will see up to a 50 % reduction in charges for moving funds between tills and PayBills. The adjustments aim to lower transaction costs for food vendors, kiosk owners, boda‑boda operators and other micro‑entrepreneurs, encouraging greater use of cash‑less payments.

Safaricom highlighted that the changes are part of its broader PATA MORE campaign, which also includes increased data bundles and faster fibre speeds for customers.