How much does Safaricom pay MPESA agents who run mobile money transfer shops across Kenya? For long, it has been something like a secret that no one could understand how Safaricom calculates the amount it pays its agents. It was as difficult as trying to know how Google calculated the rates for its publishers. But today, everything has changed. You can know Google rates per ad click and Google rates per country, the same case with Safaricom.
Many entrepreneurs are in the MPESA business and employ agent assistants to run the shops. It is not as lucrative to start the business today as it would have been 10 years ago though, but still more people are trying their luck even though business failure is not a new thing with MPESA agent shops.
Safaricom calculates the commissions it pays agents using a band, and to released a new band in 2019 to guide how much one could earn from running an MPESA shop. The leader in mobile money transfer services in the world increased the commissions by between 12 percent and 170 percent across the bands to continue attracting more networks in its system.
Below is a table showing the agent commission bands used by Safaricom whenever someone deposits cash through the network.
Safaricom agent withdrawal commissions bands
|Transaction Bands (KES) Min||Max||Withdrawal by registered customers (KES)||Withdrawal by unregistered customers (KES)|
Since sending money and receiving money between KES 49 – 100 is free, Safaricom does not give a commission for that amount. Click here to see the MPESA money transfer rates for 2019.
All the earnings are subject to 5 percent withholding tax. It is not quite clear how the company arrives at the commission split between super-agents and subagents, since super agents earn something from every transaction by a subagent to whom they have leased a an MPESA agent SIM card. Also the rates for MPESA Global transaction commissions are not clear.