Safaricom M-Pesa Service

From sending and receiving money from family and friends to making payments to suppliers and merchants for businesses, Safaricom M-Pesa is a service you probably use daily. With all the daily activity you have to deal in, you might not know well enough how much M-Pesa transactions cost you. How much M-Pesa charges you depend on the amount you send or withdraw. Depositing funds into your own M-Pesa account is free of charge.

This M-Pesa Cost Calculator computes the following M-Pesa Charges;

The cost to send money to a registered M-Pesa user
Costs are calculated based on Safaricom’s most up to date M-Pesa tariff – M-Pesa rates for transacting within bands or ranges. M-Pesa rates for sending money to a registered user will depend on how much you wish to send. For instance, while it will only cost you KSh1 to send between a minimum of KSh10 and a maximum of KSh49 (transaction band), sending amounts past Ksh49 up to KSh100 will cost KSh3. The same way it will cost KSh11 to send amounts between a minimum Ksh101 to a maximum KSh500 and KSh40 to send KSh1600 over to another registered user.

The cost to send money to an unregistered user
Sending money to unregistered users attracts higher costs. For example, M-Pesa charges KSh44 to send KSh500 to an unregistered user compared to only KSh11 to send the same amount to a registered user. Also noteworthy is that you will not be allowed to send an amount below Ksh101 though you can send as little as KSh10 to a registered user. Also, the maximum you can send to an unregistered user is capped at KSh35,000 as opposed to a registered user whom you can send up to a maximum KSh70, 000 per transaction and KSh140, 000 in a day. This is due to a Central Bank of Kenya (CBK) directive imposed on mobile money transactions in an effort to curb money laundering.

Cost to withdraw from an M-Pesa Agent and the maximum withdrawal 
Both registered and unregistered M-Pesa users can withdraw money sent to them from any M-Pesa Agent nationwide. The minimum amount both types of users can withdraw is KSh50. M-Pesa fees for agent withdrawals are equal for both registered and unregistered users.

Cost to withdraw from ATM and the maximum withdrawal from an ATM
M-Pesa tariffs for withdrawing funds at either a Pesapoint or Equity Bank ATM also vary for each transaction. The new M-Pesa charges of 21st August 2014, specify that users can withdraw multiple times at an ATM but only up to t he daily limit of KSh70,000 per day and each transaction between KSh200 – KSh20,000 depending on the ATM.

Safaricom M-Pesa Rates and Charges for ATM Withdrawal

Minimum balances for registered and unregistered M-Pesa users needs to have in their accounts before sending any amount
You need to add transaction fees to the actual amount you wish to send in order for it to get through. For example, to send KSh1,000 to a registered user you will need to top up your M-Pesa account with at least Ksh1,015 since it will cost KSh15 to send. Likewise, the minimum balance you need to send money to unregistered users is KSh1,048.

Minimum Balance on suggested for registered and unregistered M-Pesa users
This implies to the minimum amount users need to have to ensure the amounts they send remain the same when withdrawn at a M-Pesa Agent. As such, this includes both costs for sending and withdrawing money from an agent. For instance, for KSh1,000 to reach a registered user in hand you will need to have a minimum balance in your M-Pesa account of KSh1,042 (KSh15 for sending and KSh27 for withdrawing at an M-Pesa agent) and KSh1,075 for an unregistered user.

Suggested amount to send
This indicates the amount to the users needs to send to the receiver inclusive of the M-Pesa agent withdrawal costs, so that the amount remains same after withdrawing from an M-Pesa Agent. If, for instance, you decide to send KSh1,027 then the other person receives KSh1,000 after KSh27 is levied as M-Pesa withdrawal charges by the M-Pesa agent. When they withdraw the amount at an M-Pesa agent point, they receive KSh1,000 in cash – KSh27 is charged as withdrawal fees.

Safaricom M-Pesa Rates and Charges (M-Pesa Tariffs)

If you could account for M-Pesa rates & charges and how much any amount of money costs per transaction, along with the above other important details, you would probably better prepare, record and account for costs accrued and avoid splits and double transactions. Understandably, as a busy individual or small business owner, time is always of the essence and pretty much scarce to work out the entire math and minute details on your feet.