Pochi la Biashara Gets Major Boost as Safaricom Cuts M-PESA Transaction Fees

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Pochi la Biashara Gets Major Boost as Safaricom Cuts M-PESA Transaction Fees

Nairobi, Kenya – Small business owners and millions of M-PESA users have a reason to smile after Safaricom announced a fresh round of transaction fee reductions aimed at making digital payments cheaper and more accessible.

The new tariffs, which affect Pochi la Biashara, Lipa na M-PESA Buy Goods, and M-PESA Business Till transfers, are expected to lower the cost of doing business for traders while encouraging more Kenyans to embrace cashless payments.

Among the biggest winners is Pochi la Biashara, Safaricom’s business wallet designed for informal traders, freelancers and micro-entrepreneurs.

Free Payments Up to KES 200

For three months, customers paying a Pochi la Biashara merchant will enjoy lower transaction charges.

Between 1 August and 31 October 2026, payments of up to KES 200 will be free, doubling the previous fee-free limit of KES 100.

Even more significantly, any payment above KES 2,500 will now attract a flat fee of KES 50, replacing the previous maximum charge of KES 108.

The new customer charges are:

For example, a customer sending KES 10,000 to a Pochi merchant previously paid KES 90 in transaction fees. Under the new pricing, that same payment will cost just KES 50.

The revised tariffs are expected to benefit thousands of everyday businesses, from vegetable vendors and kiosks to boda boda riders, food vendors and neighbourhood shops that rely on frequent low-value transactions.

Pochi la Biashara Gets Major Boost as Safaricom Cuts M-PESA Transaction Fees

A Win for Kenya’s Informal Businesses

Pochi la Biashara was introduced to help small traders separate business income from personal funds without the need for a dedicated till number or lengthy registration process.

With lower customer charges, Safaricom is making it easier for both buyers and sellers to use the service.

For many informal businesses, transaction fees often influence whether customers choose to pay digitally or opt for cash. By removing charges on payments of up to KES 200 and reducing fees on larger transactions, Safaricom hopes to encourage more digital payments across the country.

Buy Goods Merchants Also Save More

Safaricom has also revised charges for Lipa na M-PESA Buy Goods merchants.

Beginning 7 August 2026, businesses will no longer pay transaction fees on collections of up to KES 500, up from the previous fee-free threshold of KES 200.

Collections between KES 501 and KES 36,363 will continue attracting the existing merchant fee of 0.55%, while the maximum charge remains capped at KES 200.

The change means merchants processing hundreds of small daily transactions will keep more of their earnings.

For instance, a business receiving KES 450 from a customer previously paid about KES 2.48 in transaction fees. Under the new tariff, that transaction will now be completely free.

Although the saving may appear modest per transaction, it adds up quickly for businesses handling dozens or even hundreds of payments each day.

Lower Business Till Transfer Charges

Businesses that regularly transfer money from their M-PESA Business Till will also benefit from significantly lower charges.

Effective 7 August, transfers of KES 100 and below will remain free, while fees for larger transactions have been reduced by close to half.

A business sending KES 10,000 from its till to a mobile number will now pay KES 45, down from KES 90.

Likewise, sending the same amount to a PayBill account will cost KES 24, compared to the previous KES 48.

The maximum fee for larger transactions has also been reduced from KES 108 to KES 54, making it cheaper for businesses to pay suppliers, employees, landlords, utility providers and government agencies.

Why Safaricom Is Cutting Fees

Safaricom says the revised tariffs are part of its efforts to make digital financial services more affordable while aligning with the Central Bank of Kenya’s principles of customer-centricity, transparency, fairness and affordability.

The move also reflects the remarkable growth of Pochi la Biashara.

According to Safaricom’s latest financial results, active Pochi users increased by 81.5% to 2.1 million in the year ending March 2026, surpassing the 1 million Lipa na M-PESA Buy Goods merchants.

Revenue generated through Pochi also rose 86% to KES 4 billion, underlining the platform’s growing importance among Kenya’s micro and small enterprises.

Meanwhile, Safaricom says M-PESA Kadogo, which supports fee-free low-value transactions, processed 17.1 billion transactions during the financial year ending March 2026, representing 36.8% of all M-PESA transaction volumes.

These figures illustrate how small everyday payments have become the backbone of Kenya’s digital economy.

What This Means for Businesses

For traders using Pochi la Biashara, the new tariffs offer a strong selling point. Businesses can now encourage customers to make payments of up to KES 200 without worrying about transaction charges until 31 October 2026.

Buy Goods merchants, on the other hand, will automatically enjoy fee-free collections of up to KES 500 from 7 August, with no additional action required.

Businesses that regularly transfer funds from their tills will also see lower operating costs, freeing up more cash for day-to-day operations.

A Bigger Push Towards Cashless Payments

The latest tariff review goes beyond reducing transaction fees. It signals Safaricom’s continued investment in making digital payments more practical and affordable for Kenya’s millions of small businesses.

For market traders, food vendors, boda boda riders and neighbourhood retailers, every shilling saved matters. By lowering the cost of accepting and moving money, Safaricom is strengthening the role of Pochi la Biashara as a simple, affordable payment solution for the country’s informal economy.

As more businesses embrace digital payments, the reduced fees could accelerate Kenya’s journey towards a more inclusive and cashless financial ecosystem.

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