How to Start an Mpesa Agent Shop: Costs, and Tips

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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:Β  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

πŸ’³ Deposit Bands (Ksh) πŸ“Š 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

πŸ’³ Transaction Band (Ksh) πŸ“Š Commission, Registered Customers (Ksh) πŸ“Š 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.

Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 Quotex logo without background
  • Start trading with $1
  • Earn up to 95% profits
  • Fast payments
  • $10 minimum deposit
  • $10 minimum withdrawal

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! 😊

5 Responses to “How to Start an Mpesa Agent Shop: Costs, and Tips”

  1. Comment rΓ©cupΓ©rer l’argent de paiement sur m-pesa quand on a une sim agent??

  2. Wow!!!I’ve actually learnef alot and it’ll help in starting it…..it’s a good opportunity in deed.Bravoo

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