Mpesa Business

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How to Start an M-Pesa Business Legally in Kenya (2025 Guide)

Thinking of starting an M-Pesa business? You’re not alone.

M-Pesa is one of Kenya’s most successful mobile money platforms, and becoming an M-Pesa agent is a great way to earn steady income. But how do you set it up legally and profitably?

Let’s break it down step by step

Step 1: Understand the Two Types of M-Pesa Businesses

There are two legal ways to run an M-Pesa business:

Authorized M-Pesa Agent (Aggregator or Sub-Agent)

M-Pesa Till or Paybill Holder for a business

In this blog, we focus on becoming an authorized agent.

Step 2: Meet Safaricom’s Requirements

Safaricom is strict with legal compliance. To register as an M-Pesa Agent, you need:

Business Documents:

Certificate of Registration or Incorporation

KRA PIN Certificate

Valid Business Permit

VAT Registration (if applicable)

Financial Requirements:

Minimum float: Ksh 100,000 per outlet

Bank statements or proof of capital

Good credit history (you may be vetted)

Step 3: Choose Your Location Wisely

Location is key. You want:

High foot traffic (e.g., near markets or bus stops)

Minimal competition (avoid clustering)

A secure space (cash handling = security risk)

Tip: Even rural areas can be profitable if you’re the only agent around.

Step 4: Apply to Safaricom or Partner Aggregators

You can apply:

Directly via Safaricom M-Pesa Agent Portal

Or through a master aggregator (who already has a license)

Aggregators are faster but take a small commission.

Step 5: Set Up Your Shop

What you’ll need:

Business signage (must follow Safaricom branding rules)

Float (initial cash and e-float)

Phone with agent line

M-Pesa Agent SIM Kit (provided after approval)

Keep your premises clean and safe — trust matters in mobile money.

Step 6: Operate Legally and Transparently

Issue receipts when needed

Record all transactions

Avoid fraud or shortcuts — Safaricom may revoke your license

You may also be visited for inspection, so always stay compliant.

How Much Can You Earn?

Commissions depend on transaction volume.

With good location and honest service, you can earn between Ksh 10,000 – 50,000+ per month.

Final Thoughts

Starting an M-Pesa business legally takes planning, but it’s worth it. Follow the rules, invest in a good location, and build customer trust.

Tafuta riziki halali — biashara ya M-Pesa inaweza kukulipa vizuri ukiifanya kwa njia ya haki.

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