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Are you looking forward to starting the Mpesa business? Then it is important to know how to calculate the Mpesa commission.
Despite the fact many Mpesa agents operate Mpesa they don’t know how to calculate Mpesa commission
However, worry more as we have this guide for you. Safaricom has made the whole process of calculating the Mpesa commission easy.
Since the introduction of Mpesa 2007, many people have ventured to the business.
It is a profitable business, but as like any other business, there is a need to know how the profit is calculated otherwise termed as commission.
Mpesa is the leading mobile money transfer in Kenya, and if your Mpesa is strategically located, then there are more profits.
If you would know more about how Safaricom calculates the Mpesa commission to their agents, you need to know everything.
If you thought about starting the Mpesa business, then here is how to calculate the Mpesa commission you will be receiving every end month.
See also: How To Get M-Pesa Agent Line.
How To Calculate Mpesa Commission In Kenya
Before we get to how to calculate Mpesa omission, it is significant to know how the commission comes about.
Mpesa commission is earned from the two central Mpesa transactions operated by the Mpesa agent.
These transactions are deposits and withdrawals.
Mpesa withdrawal refers to when a customer withdraws the cash from their phone.
The money is sent to your agent, Mpesa line.
As a result, your Mpesa afloat will increase, and on the other hand, your liquid cash decreases.
Mpesa deposits, on the other end, refer to where a customer has liquid cash and wishes to transform it into electronic money and deposited to his or her Mpesa account.
The customer will give you the cash, and you will top up their number with your Mpesa float, which will decrease Mpesa float while your liquid money increases.
Whenever a customer makes any of the two transactions, then as an Mpesa agent, you earn a commission.
You must know how to calculate the Mpesa commission so that you know how much is charged for any transaction.
Even though the deposit transaction is free, Safaricom does pay you commission for carrying out the service.
There are charges incurred when a customer makes withdrawal transactions depending on the amount he or she withdraws.
The amount charged for the withdrawal transaction is shared between Safaricom, Principal-agent as well as the sub-agent.
That is why you should know how to calculate this Mpesa commission for agents.
Read also: Steps To Activate M-Pesa Till Number.
Safaricom Mpesa Commission Rates/Charges For 2020
Safaricom has eased how to calculate the Mpesa commission by coming up with the Mpesa commission rate.
According to the rate, the minimum amount of commission an agent can earn is Ksh 4 after transacting Ksh50-Ksh100.
The highest amount of commission, on the other hand, from a single transaction, is Ksh190. It is after the customer transacts Ksh60, 021 to Ksh 70,000.
Here is a table breaking down the amount the Mpesa agent will earn on every deposit transaction.
See also: Mpesa Xpress Billing.
M-Pesa Agent Commission Table For 2020 – Learn How To Calculate
The table below is the Mpesa commission for transactions from 50 Kenyan shillings to 70,000 Kenyan shillings:
|Amount (transaction band)||Applicable Commission in 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|
So you have seen how to calculate the Mpesa commission in Kenya.
Now and then Safaricom does revise the withdrawal transaction commission rate.
In 2020 Safaricom has reduced some transactions’ commission rate, increased others, and kept others constant.
Here 2020 withdrawals (Registered and Unregistered) commission rates.
Related guide: How To Change M-Pesa PIN.
M-Pesa Latest Withdrawal Rates For The Year 2020
The table below is the current Mpesa withdrawal fee for 2020.
Take a look at the table and know how to calculate the Mpesa commission in Kenya:
| Applicable Commission|
|Transaction band||Registered Unregistered|
|101-500||Shs. 8||Shs. 8|
|501-1000||Shs. 10||Shs. 10|
|1,001-1500||Shs. 12||Shs. 12|
|1,501-2500||Shs. 15||Shs. 15|
|2,501-3500||Shs. 20||Shs. 20|
|3,501-5000||Shs. 25||Shs. 25|
|5,001-7500||Shs. 30||Shs. 30|
|7,501-10000||Shs. 35||Shs. 35|
|10,001-15000||Shs. 45||Shs. 45|
|15,001-20000||Shs. 60||Shs. 60|
|20,001-25000||Shs. 65||Shs. 65|
|25,001-30000||Shs. 70||Shs. 70|
|30,001-35000||Shs. 70||Shs. 70|
|35,001-40000||Shs. 100||Shs. N/A|
Now that you know the current Mpesa commission for the year 2020 for all transactions, you will be confident of how much Safaricom will charge you when you transfer or withdraw money.
And that means you know how to calculate the Mpesa commission in Kenya.
Recommended reading: How To Activate Mpesa Account.