Lipa na Mpesa PayBill Charges have been recently revised by Safaricom. The Lipa na Mpesa Service has proved to be the vital necessity in Kenya since its launching.
The service enables customers to make payments for utility bills such as KPLC and buy goods and services in the most convenient way without using coins and notes.
The charges of Lipa na Mpesa have been altered and are so pocket-friendly to enable customers budget for their spending and also on the other hand to enable the merchant/business owner make some profit.
Safaricom therefore came up with three tariffs; Business Mgao, Customer Bouquet tariff and Business Bouquet Tariff as can be seen in the tables below.
Standard Mpesa PayBill Tariffs and Charges in Kenya
1. Business Mgao Tariff and Charges
This tariff allows for a fair deal. The transaction costs burden is bared between the seller and the buyer. The charges differ as per the amounts involved in the transactions.
READ: Updated Safaricom Mpesa Charges 2020: Sending and Withdrawal Rates
As can be noted from the table below, the customer pays for transaction costs between Kshs. 101 to 999. Transactions involving Kshs. 1000 and above, the business pays more than the customer. Below is a table showing charges for Business Mgao Tariff:
| Min. (Kshs.) |
Max. (Kshs.) |
Customer Charges | Business Charges | Total |
| 1 | 49 | 0 | 0 | 0 |
| 50 | 100 | 0 | 0 | 0 |
| 101 | 499 | 22 | 0 | 22 |
| 500 | 999 | 22 | 0 | 22 |
| 1,000 | 1,499 | 22 | 11 | 33 |
| 1,500 | 2,499 | 22 | 11 | 33 |
| 2,500 | 3,499 | 33 | 22 | 55 |
| 3,500 | 4,999 | 33 | 22 | 55 |
| 5,000 | 7,499 | 33 | 50 | 83 |
| 7,500 | 9,999 | 33 | 50 | 83 |
| 10,000 | 34,999 | 33 | 77 | 110 |
| 35,000 | 49,999 | 44 | 154 | 198 |
| 50,000 | 70,000 | 55 | 165 | 220 |
2. Business Bouquet PayBill Tariff and Charges
For this tariff, the customer bares all the transaction costs while the business incurs nothing for the transactions. However, the business concerned may incur huge cumulative Safaricom Mpesa costs in the long run.
| Min. (Kshs.) |
Max. (Kshs) | Customer Charges | Business Charges | Total |
| 1 | 49 | 0 | 0 | 0 |
| 50 | 100 | 0 | 0 | 0 |
| 101 | 499 | 22 | 0 | 22 |
| 500 | 999 | 22 | 0 | 22 |
| 1,000 | 1,499 | 33 | 0 | 33 |
| 1,500 | 2,499 | 33 | 0 | 33 |
| 2,500 | 3,499 | 55 | 0 | 55 |
| 3,500 | 4,999 | 55 | 0 | 55 |
| 5,000 | 7,499 | 83 | 0 | 83 |
| 7,500 | 9,999 | 83 | 0 | 83 |
| 10,000 | 34,999 | 110 | 0 | 110 |
| 35,000 | 49,999 | 198 | 0 | 198 |
| 50,000 | 70,000 | 220 | 0 | 220 |
3. Customer Bouquet Tariff and Charges
As can be seen from the table below, the business incurs nothing for customer transactions involving amounts between Kshs. 1 and 100. Consequently, the customer incurs nothing for all the transactions irrespective of the amounts involved.
For This type of tariff, businesses see it as exploitative for them hence the tariff is not popular. Many businesses go for Business Mgao tariff as it is considered ‘a fair deal’
| Min. (Kshs.) |
Max. (Kshs.) |
Customer Charges | Business Charges | Total |
| 1 | 49 | 0 | 0 | 0 |
| 50 | 100 | 0 | 0 | 0 |
| 101 | 499 | 0 | 22 | 22 |
| 500 | 999 | 0 | 22 | 22 |
| 1,000 | 1,499 | 0 | 33 | 33 |
| 1,500 | 2,499 | 0 | 33 | 33 |
| 2,500 | 3,499 | 0 | 55 | 55 |
| 3,500 | 4,999 | 0 | 55 | 55 |
| 5,000 | 7,499 | 0 | 83 | 83 |
| 7,500 | 9,999 | 0 | 83 | 83 |
| 10,000 | 34,999 | 0 | 110 | 110 |
| 35,000 | 49,999 | 0 | 198 | 198 |
| 50,000 | 70,000 | 0 | 220 | 220 |
Note: All the figures highlighted in the tables above are in Kenyan Shillings.
