How to Get an M-PESA Paybill Number in 2026 (Kenya)

A Lipa na M-PESA paybill takes 3 to 10 business days from a complete application, and up to 2 to 4 weeks if the business sits in a regulated sector. Paybill is the right rail when your customers need to reference an account, meter, admission or invoice number, so you can reconcile who paid what. Safaricom reported 3.13 million registered M-PESA merchants at the end of FY26 (Source: Safaricom PLC Annual Report FY2026); most of the recurring-billing volume in Kenya runs on paybill.

Which businesses are eligible

Any registered Kenyan business whose model needs a per-customer account reference. The common categories:

Utilities and water companies (KPLC, NCWSC, Mowassco, and every county utility).
Schools, colleges and universities.
SACCOs, deposit-taking and non-deposit-taking.
Insurers, life and general.
Hospitals and clinics with patient billing.
Betting operators (subject to a valid GRA licence).
Landlords and property managers collecting rent per unit.
Subscription services (internet, satellite TV, gym memberships).
Government agencies and state parastatals.
Churches and charities running per-campaign or per-project collections.

Sole proprietors qualify. The rail does not care whether you are a sole trader or a listed company. What matters is the account-reference need.

Requirements and documents

Sole proprietor

Original national ID.
KRA PIN certificate.
County business permit in the trading name.
Bank settlement letter or stamped cheque leaf.
Passport photo.

Limited company

Certificate of incorporation.
CR12 (issued in the last 6 months).
Company KRA PIN.
Directors' IDs and personal KRA PINs.
County business permit.
Company bank account settlement letter.
Board resolution authorising the M-PESA business account (recommended).

Regulated sectors, add the sector licence

Banks and microfinance banks: CBK licence.
SACCOs: SASRA licence (DT-SACCOs) or Commissioner-of-Cooperatives registration (non-DT).
Insurers: IRA licence.
Betting operators: GRA (formerly BCLB) licence.
Schools and universities: Ministry of Education registration, KUCCPS or CUE record.
Hospitals and clinics: KMPDC facility licence.
NGOs and churches: NGO Coordination Board registration or Church Registrar record.

The application flow

Download the Lipa na M-PESA paybill application form (available at any Safaricom Shop, or start the application in the M-PESA Business App).
Complete the form (typed for company applications, not handwritten).
Attach copies of every KYC document; carry originals for verification at the shop.
Submit at a Safaricom Shop. The shop scans and forwards to compliance.
Compliance reviews (3 to 10 business days standard, 2 to 4 weeks for regulated sectors).
Receive an SMS with your paybill number and Business Portal credentials.
Log into the Business Portal, change your password, and set the settlement schedule.
Wire the Daraja callback URL if you want programmatic reconciliation.
Publish the paybill and account-number format on your invoices, notice boards and website.

Timelines

Applicant type	Typical time to paybill number
Sole trader, non-regulated	3 to 5 business days
Limited company, non-regulated	5 to 10 business days
SACCO (SASRA-licensed)	10 to 15 business days
Insurer, bank, betting operator	2 to 4 weeks
Government agency	2 to 6 weeks depending on Treasury sign-off

What it costs

Safaricom activation fee: no published fee for a standard paybill in 2026.
County business permit: KES 3,000 to KES 30,000 depending on trade and county.
Sector licence fees: paid separately to the relevant regulator (CBK, IRA, GRA, SASRA, KMPDC).
Daraja integration: developer time to build against the Safaricom Daraja API sandbox, then production credentials.
Ongoing merchant fee: negotiated per paybill, typically tiered by monthly volume.

The customer pays the standard M-PESA send tariff on the payment side (up to KES 108 for the largest transaction bracket).

Till or paybill

The right rail depends on whether you need a per-customer account reference:

	Buy Goods (till)	Paybill
Account reference	None	Required from the customer
Customer fee	Free (fuel stations excepted)	Standard send tariff (up to KES 108)
Business fee	0.55%, capped at KES 200	Negotiated per paybill
Reconciliation	Time-and-amount matching	Account reference matches your billing system
Best for	Point-of-sale retail, food, transport	Bills, tuition, memberships, subscriptions

Read the full decision framework in Pochi vs Buy Goods vs Paybill or the till-specific guide how to register an M-PESA till.

After you go live

Publish the paybill and the exact account-number format your customers must use. Ambiguity here is the top reason for reconciliation failures.

State the paybill in bold on every invoice and notice board.
Give an example of the account number in the format you expect (e.g. "Meter number, 8 digits, no spaces").
Reject or route to a suspense account any payment where the reference does not match your billing system, and follow up with the customer.
Turn on Daraja callbacks so payments land in your billing system in real time, not overnight.

For paybill vs Buy Goods pricing detail, see Paybill vs Buy Goods charges and the forthcoming M-PESA paybill charges for businesses 2026.

Related business guides

FAQ

Which businesses are eligible for an M-PESA paybill?

Registered Kenyan businesses that need a per-customer account reference: utilities, water companies, schools, universities, colleges, SACCOs, insurers, hospitals, betting operators, subscription services, hotels, real-estate agencies collecting rent, and any business with recurring per-customer billing. Sole proprietors qualify as long as the trade fits an account-referenced model.

What documents do I need?

For a sole proprietor: national ID, KRA PIN, county business permit, bank settlement letter, passport photo. For a limited company: certificate of incorporation, CR12 issued in the last 6 months, company KRA PIN, directors' IDs and personal KRA PINs, county business permit, company bank account settlement letter. Regulated sectors add sector KYC on top: banking licence for banks, IRA licence for insurers, GRA licence for betting, KUCCPS or CUE record for education.

How long does approval take?

Standard paybills clear in 3 to 10 business days once documents are complete. Regulated-sector paybills can take 2 to 4 weeks because Safaricom compliance runs a sector-specific licensing check on top of the standard business KYC.

What does it cost to get a paybill?

Safaricom does not publish an activation fee for a standard paybill in 2026. Costs to budget for are the county business permit (KES 3,000 to KES 30,000) and any sector licensing fees. Optional: Daraja API integration development if you want programmatic reconciliation.

Should I choose a till or a paybill?

Choose a till (Buy Goods) if you sell over the counter, do not need to reconcile per customer, and want zero friction at the point of sale (customer pays nothing). Choose a paybill if customers need to reference an account, meter, admission or invoice number when they pay, or if you need programmatic reconciliation via Daraja.

What is the customer fee on a paybill payment?

The customer pays the standard M-PESA send tariff, ranging from KES 0 (below KES 100) up to KES 108 (above KES 100,000). The business pays a negotiated per-paybill fee to Safaricom, typically tiered by monthly volume.

Can I use my till number as a paybill?

No. Tills and paybills are separate shortcodes with different UX (tills do not take an account number, paybills require one) and different fee models. If you already have a till and now need per-customer references, you apply for a separate paybill through the standard process.

Verified 1 September 2026. Merchant count from Safaricom PLC Annual Report FY2026. KYC and application flow from the Safaricom Lipa na M-PESA merchant on-boarding pack. Sector licence references from CBK, IRA, GRA, SASRA and KMPDC public registers.