Updated Safaricom Lipa na Mpesa PayBill Charges: New Rates 2020/2021

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.

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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.