M-PESA Till charges for businesses 2026: merchant pays

When a customer pays your Lipa na M-PESA Buy Goods till, they pay zero. You, the merchant, pay a small banded percentage of the transaction value on settlement. The pattern in 2026 is roughly 0.55 percent of the transaction value in the middle bands, capped at KES 200 for large transactions, and free below a small threshold. The exact bands are published on the Safaricom Consumer Tariffs page and the paybillke fees calculator holds the current values. (Source: Safaricom M-PESA Consumer Tariffs and Limits, verified August 2026.)

Who pays what on a Buy Goods transaction

The Buy Goods rail is deliberately asymmetric. Customers see a zero-fee experience, which is why tills are the preferred rail for retail. The full cost of moving money sits on the merchant side and comes out of your settlement.

Side	Buy Goods (till)	Paybill (compare)
Customer	KES 0	Up to KES 108 send fee (unless paybill absorbs)
Merchant	Banded percentage of the transaction (approx. 0.55%), capped at KES 200	Negotiated per-paybill fee, often lower or zero if customer pays

Buy Goods fee bands (2026)

Safaricom publishes the merchant-side Buy Goods bands on their Consumer Tariffs page. The 2026 structure follows the same shape as prior years: a free floor for very small transactions, a middle band charged at approximately 0.55 percent of the transaction value, and a cap at KES 200 that kicks in once the percentage would exceed that ceiling (roughly above KES 36,363). Because tariff bands can move mid-year, this guide does not print a full band-by-band table. Use the live calculator to get the correct number for your transaction size today. (Source: Safaricom M-PESA Consumer Tariffs and Limits, verified August 2026.)

Worked examples: KES 500, KES 5,000, KES 50,000

Using the current pattern (approximately 0.55 percent in the middle bands, capped at KES 200), the effective merchant deduction on three common basket sizes looks like:

Transaction	Customer pays	Approx. merchant fee	Net to your bank
KES 500	KES 500	Approx. KES 3 (0.55%)	Approx. KES 497
KES 5,000	KES 5,000	Approx. KES 28 (0.55%)	Approx. KES 4,972
KES 50,000	KES 50,000	KES 200 (capped)	Approx. KES 49,800

These are illustrative. Confirm current fees in the M-PESA cost calculator before you build a margin model. The settlement-side fee on the sweep from your business account to your bank is separate and typically KES 0 to KES 100 depending on the bank rail.

How to budget for the merchant drag

For most retail businesses the effective drag on Buy Goods revenue is between 0.4 and 0.6 percent, once you blend small (free) transactions with capped-out (KES 200) large transactions. The two moves that shift this number in your favour:

Encourage larger baskets. The KES 200 cap makes larger transactions cheaper as a percentage. A KES 100,000 sale costs 0.2 percent on the till side.
Push very small purchases to cash or a paybill with a zero merchant fee. If your average ticket is below KES 100 and volumes are high, look at Pochi or a paybill structure.

The full comparison against paybill economics sits in M-PESA paybill charges for businesses.

The other cost: settlement to bank

The Buy Goods band is not the only cost. When Safaricom sweeps your till balance to your registered Kenyan bank account, a small settlement fee also applies, typically KES 0 to KES 100 per settlement depending on the bank rail and cadence you selected in the M-PESA Business Portal. See M-PESA settlement time for the cadence and how to withdraw from a till for the mechanics.

Related business guides

FAQ

What does the customer pay when they Buy Goods on my till?

Nothing. Buy Goods is free on the customer side, no send fee and no excise duty. The merchant carries the cost on the settlement side. This is what makes tills popular with customers and is the single strongest reason to accept M-PESA on a till instead of a paybill for retail. (Source: Safaricom M-PESA Consumer Tariffs and Limits, verified August 2026.)

What does the merchant pay on each Buy Goods transaction?

A percentage of the transaction value, banded by amount, capped at KES 200 for large transactions, and zero for transactions under KES 200. The headline pattern is roughly 0.55 percent of the transaction value in the middle bands. Confirm the current bands in the paybillke fees calculator or the M-PESA Business Portal before you set your pricing. (Source: Safaricom M-PESA Consumer Tariffs and Limits, verified August 2026.)

Are there transactions below which the till fee is zero?

Yes. Very small Buy Goods transactions (typically at or below KES 100 to KES 200) are free on the merchant side too. Above that threshold the banded percentage kicks in. Check the current cutoff in the Safaricom Consumer Tariffs page since this figure has moved historically.

How does the till charge compare to a paybill?

Tills are simpler. Customer pays zero, merchant pays the till band. Paybills split cost differently, either the customer pays a send fee (up to KES 108) with a lower or zero merchant fee, or the merchant absorbs both sides on a customer-pays-zero paybill. See our companion guide on paybill charges for businesses for the full contrast.

Do till charges apply to Fuliza-topped transactions?

Yes. When a customer completes a Buy Goods payment partly via Fuliza (the overdraft covers the shortfall on the customer M-PESA wallet), the settlement to your till is unchanged. You get the full amount and pay the standard till band. The Fuliza fee is on the customer side.

Is the till fee negotiable for large merchants?

Buy Goods tariffs are set at the Safaricom consumer tariff level and are not commonly negotiated per merchant. Volume discounts more often show up in Paybill contracts, where the customer send fee side is more variable. For very large merchants a discussion with a Safaricom Business Account Manager is the right path.

Do I pay VAT on the till fee?

The Buy Goods merchant fee is inclusive of the 20 percent excise duty on money transfer fees. This is why the effective merchant cost is slightly higher than the raw percentage suggests. Treat the deduction on your settlement report as the true cost to the business.

Verified 1 September 2026. Tariff bands from Safaricom PLC's Consumer Tariffs and Limits page (Source: Safaricom M-PESA Consumer Tariffs and Limits, verified August 2026). Where an exact 2026 figure is uncertain the pattern is quoted with a confirm-in-app note pointing to the paybillke fees calculator.