Every Kenyan small business eventually asks the same question: do we get a paybill, a till number, or just use Pochi la Biashara? And once you decide — how do you actually apply? This guide walks through the four Safaricom Lipa na M-PESA business products, who each one is for, the documents you need, the application process via m-pesaforbusiness.co.ke, and what it actually costs to receive money through each one.

The four Lipa na M-PESA business products

1. Paybill

A 6-7 digit business number used for billing, where each customer enters an account identifier (account number, phone, ID, reference). The customer's payment is matched to their account on your side via the account field. Used by:

Utilities (KPLC, water companies)
Banks, SACCOs, microfinance
Schools, universities, hospitals
Government agencies (KRA, eCitizen, NSSF, SHA)
Insurance companies
Churches, NGOs accepting donations with a reference
Subscription businesses (DStv, GOtv, fibre ISPs)

2. Till number (Buy Goods)

A 5-7 digit business number used for retail and merchant payments, where customers select "Buy Goods" from M-PESA and enter the till. No account number is required — useful for retail flows where every transaction is anonymous to the customer's identity. Used by:

Supermarkets and convenience stores
Restaurants, cafés, bars
Boutiques and clothing shops
Petrol stations
Pharmacies
Salons and barbershops
Most face-to-face merchants

3. Pochi la Biashara

A "personal till" tied to a single phone number. Built for individual sellers and side-hustle traders who want to separate business cash from personal M-PESA without the documentation overhead of a full till. Used by:

Mama mboga and roadside vegetable sellers
Boda boda riders collecting fares
Online sellers (Instagram shops, WhatsApp businesses)
Hawkers and small-scale traders
Service-based freelancers (cleaners, tutors, artisans)

4. Bulk Payment (Business to Customer / B2C)

Outbound disbursements from a business to multiple customers/employees. Used to pay salaries, supplier invoices, dividends, agricultural produce, etc. Not a receiving product — businesses use Bulk Payment to send M-PESA out to many people at once.

Cost comparison

The fees Safaricom charges merchants vary by product:

Paybill: Customer pays standard paybill tariff (KES 0-105 depending on amount). Merchant pays a settlement fee (~0.5-1% per transaction depending on tier).
Till number: "Lipa na M-PESA Buy Goods" transactions are FREE for customers (Safaricom waived customer fees in 2018). Merchant pays a 0.5-1% settlement fee.
Pochi la Biashara: Customer pays standard send-money tariff (KES 0-110 depending on amount). Holder receives the funds with no monthly fee.
Bulk Payment: Per-transaction fee paid by the business based on disbursement amount (typically KES 5-105 per disbursement).

Bottom line: if you want customers to pay for free (driving conversion at point-of-sale), till number wins. If you need account-level matching, paybill is unavoidable despite the customer fee.

Application requirements

Common requirements across all products:

Application form: Online form completed at m-pesaforbusiness.co.ke
Identification: National ID or passport for the account administrator(s)
KRA PIN certificate: Personal PIN if sole trader; company PIN if registered business
Terms and Conditions: Signed acceptance of M-PESA terms for paybill / Buy Goods
Bank details: Letter from your bank or a cancelled cheque showing the bank account where M-PESA settlement will be deposited
Registered Safaricom line: The Safaricom number that will manage the till/paybill account, registered in the applicant's name

Additional for paybill

Business Registration Certificate or Business Permit (Single Business Permit from county)
Bank confirmation letter or cancelled cheque (paybill cannot use a personal account; must be a business account)
Utility bill or business photo to confirm physical address

Additional for till

Business permit (Single Business Permit from your county government)
Bank account confirmation (can be sole-trader account in some cases — easier than paybill)

Additional for Pochi la Biashara

Pochi has the lowest documentation bar. Activate from your M-PESA app:

Open the M-PESA app or dial *334#
Go to "Pochi la Biashara"
Activate — you set a PIN to authorise withdrawals from your Pochi balance

No paperwork, no business permit. Pochi works on the assumption you're an individual sole-trader — there's a daily limit (currently KES 300,000) appropriate for that scale.

Application steps for a paybill

Visit m-pesaforbusiness.co.ke. Click "Apply Now". Under "M-Pesa Business Till", click "Apply Now" again (the same portal handles paybill applications under the till workflow with a different product selection).
Choose product. Select Paybill (or Till, or Bulk Payment, or Pochi).
Choose ownership type. Sole proprietor, partnership, or registered company. Determines which documents are required.
Fill the application form. Business name, KRA PIN, physical address, bank account details, M-PESA admin phone number.
Upload supporting documents. Scanned or photographed copies of ID, KRA PIN, business permit, bank confirmation, utility bill.
Sign the terms and conditions. Digital signature in the portal.
Submit. You receive a confirmation message with an application reference.
Wait for processing. Safaricom verifies documents and assigns a paybill / till number. Typically 24-72 hours for a clean application.
Receive your number. Via SMS to the registered phone and email to the registered admin email.
Activate and test. Send a small test payment from another M-PESA line to confirm the paybill receives funds and they settle to your bank correctly.

How long does it take?

Realistic timing in 2026:

Pochi la Biashara: Instant — activate from the M-PESA app in under 2 minutes.
Till number: 24-48 hours for a clean sole-trader application.
Paybill: 48-72 hours for a registered business with all documents in order. Can stretch to 5-7 working days if Safaricom flags anything for clarification.
Bulk Payment: 3-5 working days. Requires more KYC because outbound funds carry higher risk.

Common reasons applications get delayed: KRA PIN mismatch with company name, expired business permit, bank confirmation letter older than 30 days, or admin phone number registered in a different name from the business.

Dedicated paybill vs collection paybill

When applying for a paybill, you may be offered two routes:

Dedicated paybill (most common). Your business gets a unique paybill number. You handle reconciliation by parsing the account number on each incoming payment.
Bank collection paybill. Your bank's shared paybill (e.g. KCB 522522, Equity 247247, Co-op 400200) is used, with your bank account number as the account. Setup is faster but customers pay to a bank-branded paybill which can confuse first-time payers about who they're paying.

Most growing businesses prefer dedicated. Bank collection is fine for basic cases but limits your branding and adds a settlement layer.

Till number categories

When applying for a till, Safaricom offers different till sub-types:

Short-term till. Temporary till for fundraising — medical bills, weddings, funerals, charity events. Easier setup.
Standard till. Permanent till for ongoing retail business.
Bulk Payment till. Outbound disbursements only.

Five common application mistakes

Using a personal bank account for paybill. Paybill settlement requires a business bank account. Use a personal account and the application stalls.
Mismatched names. Business name on the application must match exactly with KRA PIN and bank confirmation. Even minor typos (an extra space, "Ltd" vs "Limited") cause delays.
Expired business permit. Single Business Permit must be current. Counties don't always send renewal reminders — check before applying.
Not having the admin phone in the business name. The Safaricom line managing the paybill should ideally be registered in the business name (or the proprietor's name for sole traders). Personal lines registered to other family members complicate things.
Skipping the test transaction. Your first "customer" should be you, sending a small amount from another M-PESA line. Catches account-format mismatches and bank settlement issues before real customers experience them.

Ongoing costs after launch

Once you have your paybill / till:

No monthly fee for the paybill / till itself
Settlement fee per transaction (0.5-1% typically)
Bank charges on M-PESA-to-bank settlements (varies by bank — many waive these for SME accounts)
SMS notification fees if you opt for transaction SMS alerts (KES 1 per SMS)

FAQ

How much does it cost to apply for a paybill?

Application is free. You only pay transaction fees once the paybill is active.

Can I apply for a paybill as an individual?

Paybill specifically requires a registered business or sole-trader business with a Single Business Permit. For individual receiving, use Pochi la Biashara — instant activation, no paperwork.

Do I need a business permit for a till?

Yes — Safaricom requires a Single Business Permit (or its equivalent in your county) for all till applications.

Can one business have both a paybill and a till?

Yes — many do. Restaurants use a till for in-person payments and a paybill for delivery orders with order references. Schools use a paybill for fees and a till for canteen purchases. Apply separately for each.

Can a non-Kenyan resident apply?

The business must be registered in Kenya. Non-Kenyan owners are allowed if the business is a Kenyan-registered entity with KRA PIN and required permits. The admin Safaricom line must be registered in Kenya.

My application was rejected. What now?

Safaricom typically tells you the specific reason. Common fixes: re-submit with corrected documents, or visit a Safaricom shop with the rejection reference for in-person resolution.

Resources

m-pesaforbusiness.co.ke — official application portal
Safaricom Lipa na M-PESA Pay Bill page
How M-PESA paybills actually work — technical anatomy
Paybill scams in Kenya — and how to spot them