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Do you want to start an Mpesa Agency business?
Would you like to know the costs involved in the startup and the commissions paid to mpesa agents?
Well, today in Joon Business Ideas we take you through the Mpesa business in Kenya — detailing facts that matter in Mpesa agency.
And, helping you with the ropes to start your own chain of Mpesa sub agent shops.
Are you ready to learn?
Here’ How the Mpesa Business Works
As an Mpesa agent, your job will be to receive deposits from customers, register customers for Mpesa and also help them withdraw money when they want.
You can get into the Mpesa business as a super agent if you can maintain a float of KES. 500,000.
Or, you can join the business as an Agent/Aggregator
If you join as an aggregator you will be responsible for: –
- Recruiting sub-agents
- Helping sub-agents meet conditions of operations laid out by Safaricom
- Operating a number of tills
Requirement to become an Mpesa Agent/Aggregator
- Be a Limited company able to operate at least 3 agent shops under the same company name
- The agent must invest Ksh. 100,000 for simex (sim replacement cards)
- Must maintain a minimum M-pesa Float of Ksh. 100,000 per store
- Agent shops must at least be spread in two different counties
How to Become an Mpesa Sub-agent
Mpesa sub agent stores are the typical Mpesa shops you see everywhere in the hood.
To become an Mpesa sub-agent, you will be recruited by an Agent and you will operate under them.
This is how sub-agent stores should work.
- The sub agent is recruited to work under the agent but; his line is aggregated — meaning the sub agent shop is registered directly by Safaricom
- The Sub agent then gets a till to carry out Mpesa transactions
- The sub agent is then required to get a store management till which is used to manage the float. You can get this at KCB bank. Note — Safaricom will deposit your monthly commissions in this account
- You need to maintain a minimum float of Ksh. 30,000
- You get 80% commission while the agent who recruited you gets 20%. These commissions are sent directly by Safaricom
This is how Mpesa sub agent stores actually work
Mpesa agents recruit sub agents stores and treat them as their own.
They deliberately fail to register sub-agent shops with Safaricom. This takes away the privilege of sub agents receiving commissions direct from Safaricom — which now means that the agent become bosses to sub agents.
They decide what to pay sub agents. Could be anything from 60% commission to 80% but it is mostly 70%.
Disadvantage of not having your line aggregated by Safaricom
- Agents decide what float they want you to maintain. Often Ksh. 100,000 per sub agent store
- You lose control of your float as it is managed by the Agent
- If an agent is found on the wrong side of Safaricom operation rules and their till is closed; your float gets locked in too
- Agents charge goodwill to give tills to sub agents. Could be anything from Ksh. 15,000 in Kisumu to Ksh. 100,000 in Nairobi.
How much commission can a Mpesa sub agent make in a month?
The amount of money an Mpesa agent makes depend on factors like: –
- The ratio of mpesa deposits via a vis the mpesa withdrawals
- Population in an area
- Mpesa registrations made by subagent
In average a sub agent operating with a float of Ksh. 30,000 can make an estimated commission of Ksh. 13,000?
Costs of starting an Mpesa sub agent business
- Mpesa float – Ksh. 30,000
- Rent – Ksh. 3,000
- Branding – Ksh. 3,000
- Goodwill for a non aggregated till – Ksh. 15,000
- Employee wage – Ksh. 4,000
- You need an average of Ksh. 55,000 to start an Mpesa – sub agent store.