M-Pesa Paybill Charges 2026 (Mgao, Business & Customer Tarrifs)

The M-Pesa Paybill has quickly become a popular feature since its launch in 2013, allowing businesses to receive cashless payments from customers via PayBill numbers and Buy Goods till numbers. It’s the most-used business payment collection service, and as of the writing of this article, Lipa na M-Pesa Paybill processed over KSh 4.2 trillion in business transactions in H1 FY26 alone (See more here).

Jump Into What Matters

And just like the everyday M-Pesa transactions, including sending money, withdrawing from agents and ATMS, using the M-Pesa Lipa na M-Pesa Feature attracts transaction charges which are either incurred by the business or the customer based on the tariff that the Business owner has subscribed to, as we will see later on in the article.

Do Do paybills have transaction fees? What are M-PESA’s current transaction fees? These are some questions this article answers for you, with all the correct answers you need to know. Here is all to learn about Lipa Na M-Pesa charges in 2026.

What is the M-PESA 2026 PayBill Tariff?

Safaricom entered the Kenyan market in 1993 and has become the country’s largest telecommunications provider. One of its biggest innovations is M-Pesa, a mobile money service launched in 2007 that now offers several financial services. The M-Pesa PayBill feature, introduced in 2013, lets individuals and businesses receive payments directly through mobile money.

In 2026, M-Pesa Paybill still uses three main pricing structures: Mgao Tariff (shared cost), Business Bouquet Tariff (customer pays all), and Customer Bouquet Tariff (business pays all). Each option suits different business needs and customer relationships. Charges range from free for transactions under KSh 100 to KSh 108 per transaction.

M-Pesa Paybill charges in 2026

Here are the Lipa na M-Pesa Paybill charges for Mgao, Business, and Customer tariffs:

Mgao Tariff Charges

Under the Mgao Tariff, transaction costs are shared between businesses and their customers. As of 2026, this tariff structure shows an interesting cost distribution pattern: for smaller transactions (KSh 101-1,000), customers bear 100% of the modest charges, but as transaction values increase, businesses shoulder a progressively larger share of the fees.

Here is the complete Mgao Tariff breakdown:

1 – 49	0	0	0	Free
50 – 100	0	0	0	Free
101 – 500	5	0	5	100% Customer
501 – 1,000	10	0	10	100% Customer
1,001 – 1,500	10	5	15	67% Customer / 33% Business
1,501 – 2,500	13	7	20	65% Customer / 35% Business
2,501 – 3,500	16	9	25	64% Customer / 36% Business
3,501 – 5,000	16	18	34	47% Customer / 53% Business
5,001 – 7,500	17	25	42	40% Customer / 60% Business
7,501 – 10,000	18	30	48	38% Customer / 62% Business
10,001 – 15,000	18	39	57	32% Customer / 68% Business
15,001 – 20,000	19	43	62	31% Customer / 69% Business
20,001 – 25,000	20	47	67	30% Customer / 70% Business
25,001 – 30,000	20	52	72	28% Customer / 72% Business
30,001 – 35,000	21	62	83	25% Customer / 75% Business
35,001 – 40,000	23	76	99	23% Customer / 77% Business
40,001 – 45,000	23	80	103	22% Customer / 78% Business
45,001 – 50,000	24	84	108	22% Customer / 78% Business
50,001 – 70,000	24	84	108	22% Customer / 78% Business
70,001 – 250,000	24	84	108	22% Customer / 78% Business

M-Pesa Business Bouquet Tariffs

The Business Bouquet Tariff is the most commonly used Paybill structure in Kenya, with the majority of businesses, including utilities, banks, and government entities, using it. Why? In this model, businesses pay absolutely nothing in transaction fees, with customers covering them, which favors most businesses.

Here are all the complete Business Bouquet charges that customers pay in 2026:

1 – 49	0	0
50 – 100	0	0
101 – 500	5	5
501 – 1,000	10	10
1,001 – 1,500	15	15
1,501 – 2,500	20	20
2,501 – 3,500	25	25
3,501 – 5,000	34	34
5,001 – 7,500	42	42
7,501 – 10,000	48	48
10,001 – 15,000	57	57
15,001 – 20,000	62	62
20,001 – 25,000	67	67
25,001 – 30,000	72	72
30,001 – 35,000	83	83
35,001 – 40,000	99	99
40,001 – 45,000	103	103
45,001 – 50,000	108	108
50,001 – 70,000	108	108
70,001 – 250,000	108	108

M-Pesa Paybill Customer Bouquet Tariffs

This tariff is the most customer-friendly option. Businesses pay all the transaction charges, so customers can pay for goods and services without any deductions. Here are the transaction charges for this model:

1 – 49	0	0
50 – 100	0	0
101 – 500	5	5
501 – 1,000	10	10
1,001 – 1,500	15	15
1,501 – 2,500	20	20
2,501 – 3,500	25	25
3,501 – 5,000	34	34
5,001 – 7,500	42	42
7,501 – 10,000	48	48
10,001 – 15,000	57	57
15,001 – 20,000	62	62
20,001 – 25,000	67	67
25,001 – 30,000	72	72
30,001 – 35,000	83	83
35,001 – 40,000	99	99
40,001 – 45,000	103	103
45,001 – 50,000	108	108
50,001 – 70,000	108	108
70,001 – 250,000	108	108

FAQS: M-Pesa Paybill Charges

Are Paybill charges cheaper than Buy Goods (Till Number) charges?

Yes, for large transactions. Paying KSh 50,000 via Buy Goods costs KSh 200 (0.55% of the transaction), while the same payment via Paybill Business Bouquet costs only KSh 108. However, for very small amounts under KSh 500, both services charge similar minimal fees of KSh 5-10.

How much does it cost to pay KSh 10,000 via M-Pesa Paybill in 2026?

The cost depends on the business’s tariff: Under Business Bouquet, the customer pays KSh 48 and the business pays nothing. Under the Mgao Tariff, the customer pays KSh 18, and the business pays KSh 30 (total KSh 48). Under Customer Bouquet, the customer pays nothing, and the business pays KSh 48.

What does *334# do in Safaricom?

It is the Official M-Pesa USSD code that enables one to access different M-Pesa services, including sending and withdrawing money, loans and savings, Lipa Na M-Pesa (Paybill, Buy Goods/Till number, Pochi La Biashara), and more.