How to Start an Mpesa Agent Shop | Costs & Commissions of 2024

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Starting a Mpesa agent shop in Kenya can indeed be a lucrative venture, considering the widespread use and popularity of Mpesa in the country. Here’s a detailed breakdown of the steps, costs, and considerations involved:

1. Benefits of Becoming a Mpesa Agent

Growth and innovation
Being part of a rapidly growing industry.
Steady income: earn commissions from transactions.
Customer loyalty: Establishing a loyal customer base.
Competitive edge: offer a service that many businesses don’t.
Access to support: get training and support from Safaricom and partners.

2. Requirements and Costs

Business registration: you’ll need to have a registered limited company with at least 3 outlets or as a sub-agent.
Minimum float: Ksh. 100,000 per outlet.
Security: ensure your premises meet Safaricom’s standards.
Power and internet: reliable supply for point-of-sale devices.
Qualified staff: make sure they are trained to handle transactions and customer queries.
Compliance: ensure they meet legal and regulatory requirements.

3. Cost Breakdown for starting a Mpesa store

Point-of-sale device: cost varies based on the device.
Branding materials: Ksh. 15,000 per outlet.
Float: Minimum Ksh. 100,000 per outlet.
Rent, electricity, and internet vary based on location and usage.
Staff salaries vary Depending on qualifications and number.
Miscellaneous expenses such as stationery, transport, etc.

4. Types and Levels of Mpesa Agents

Super-agents, directly contracted with Safaricom, can operate multiple outlets.
Sub-agents, contracted with super-agents, operate within a specific region.
Levels: bronze, silver, gold, and platinum, based on float and transaction limits.

5. Process of Applying and Registering

Obtain an application form from Safaricom.
Fill in personal and business details, and attach the required documents.
Pay application and registration fees.
Wait for Safaricom’s review and due diligence.
If approved, sign the contract, pay the registration fee, and receive the necessary equipment.
Activate the Mpesa account and start offering services.

6. Commissions and Profits

Earn commissions based on transaction volume and value.
Rates vary for deposits and withdrawals for registered and unregistered customers.
Profit depends on agent type, transaction volume, location, competition, and service quality.

The table below shows the commission rates for different types of services offered by Mpesa agents as of December 2024:

Mpesa Agent Commission on Deposits

💳 Deposit Bands (Ksh)	📊 Agent Commission (Ksh)
50 – 100	4

101 – 510	8
511 – 1,010	9

1,011 – 1,510	10
1,511 – 2,510	11

2,511 – 3,510	12
3,511 – 5,010	14

5,011 – 7,510	20
7,511 – 10,010	28

10,011 – 15,010	40
15,011 – 20,020	55

20,021 – 25,020	71
25,021 – 30,020	87

30,021 – 35,020	103
35,021 – 40,020	119

40,021 – 45,020	135
45,021 – 50,020	150

50,021 – 60,020	190
60,021 – 70,000	190

Mpesa Agent Commission on Withdrawals

💳 Transaction Band (Ksh)	📊 Commission, Registered Customers (Ksh)	📊 Commission, Unregistered Customers (Ksh)
10 – 49	N/A	N/A

50 – 100	5	N/A
101 – 500	8	8

501 – 1,000	10	10
1,001 – 1,500	12	12

1,501 – 2,500	15	15
2,501 – 3,500	20	20

3,501 – 5,000	25	25
5,001 – 7,500	30	30

7,501 – 10,000	35	35
15,001 – 20,000	60	60

20,001 – 25,000	65	65
25,001 – 30,000	70	70

35,001-40,000	100	NA
40,001 – 45,000	150	NA

45,001 – 50,000	180	NA
50,001 – 70,000	200	NA

Your monthly profit will depend on several factors such as:

The type and level of agent that you are
The number and value of transactions that you perform
Location: – the location and size of your shop
The competition and demand for Mpesa services in your area
Quality: – the efficiency and quality of your service delivery
The management and marketing of your shop

Therefore, it is important to plan and monitor your business performance regularly and make adjustments as needed to maximize your profit potential.

7. Tips for Managing a Mpesa Agent Shop

Ensure adequate float at all times.
Reconcile transactions daily and report discrepancies.
Maintain point-of-sale devices and branding materials.
Train staff for efficient and professional service.
Ensure security measures are in place.
Stay compliant with legal and regulatory requirements.
Monitor business performance regularly and seek feedback from customers.
Promote the shop through various channels.

8. Challenges and Risks

Fraud and theft.
Downtime.
Competition.
Regulatory changes.

Conclusion

Mpesa is a lucrative and rewarding business opportunity in Kenya that can help you achieve your financial goals.

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However, to start and run a Mpesa agent shop successfully, you need to meet certain requirements, follow certain procedures, and overcome certain challenges.

We hope that this article has given you a clear and comprehensive guide on how to start a Mpesa agent shop in Kenya in 2024.

If you have any questions or comments, please feel free to contact us. We wish you all the best in your Mpesa journey! 😊