Safaricom Lowers Lipa na M-PESA Buy Goods Charges from August 7, 2026: Merchants to Enjoy Free Payments Up to KSh 500

Safaricom Lowers Lipa na M-PESA Buy Goods Charges from August 7, 2026

Safaricom has announced a major reduction in Lipa na M-PESA Buy Goods transaction charges, giving businesses and customers a more affordable way to make and receive digital payments across Kenya.

The revised tariff, which takes effect on 7 August 2026, introduces significant savings for merchants, especially those handling small-value transactions. The move is part of Safaricom’s ongoing commitment to expanding financial inclusion while making cashless payments easier, faster, and more cost-effective.

At a Glance

Feature	Previous	New (Effective 7 August 2026)
Free customer payments	Up to KSh 200	Up to KSh 500
Charges above KSh 500	Existing rates	Unchanged
Till to Mobile & Paybill payments	Standard charges	50% lower charges
Payments to Tills	Variable	Maximum KSh 100

What’s Changing?

Safaricom has introduced several improvements to the Lipa na M-PESA Buy Goods pricing structure.

1. Free Payments Increased to KSh 500

One of the biggest changes is the increase in the fee-free transaction limit.

Merchants can now receive customer payments of up to KSh 500 without paying any transaction fees. Previously, only transactions up to KSh 200 qualified for free processing.

This means businesses that receive many low-value payments—such as retail shops, food vendors, pharmacies, salons, kiosks, and supermarkets—will save more on transaction costs.

2. Charges Above KSh 500 Remain the Same

Safaricom has confirmed that there are no changes to the existing tariff for transactions exceeding KSh 500.

Businesses handling higher-value payments will continue using the current pricing structure.

3. 50% Reduction on Till-to-Mobile and Paybill Payments

Merchants will also benefit from a 50% reduction in charges when transferring money from their Buy Goods till to:

• Mobile numbers
• Paybill accounts

This change helps businesses lower operational costs when moving funds for daily business activities.

4. Maximum Charge of KSh 100 for Payments to Tills

Safaricom has introduced a cap on charges when making payments to Buy Goods tills.

Regardless of the transaction amount, the fee will not exceed KSh 100, providing greater predictability for businesses.

Additional Payment Solutions Available

Safaricom continues to encourage merchants to adopt modern payment collection methods that improve customer convenience.

QR Code Payments

Customers can simply scan a QR code to complete payments.

Benefits include:

• Faster checkout
• No need to type a till number
• Reduced payment errors
• Improved customer experience

M-PESA Prompt (STK Push)

Merchants can initiate payment requests directly to customers’ mobile phones.

This solution enables:

• Faster payment confirmation
• Improved security
• Convenient customer experience
• Reduced manual entry mistakes

Benefits for Businesses

The revised tariff offers several advantages for merchants across Kenya.

Lower Transaction Costs

Businesses receiving frequent small payments will save more thanks to the increased fee-free threshold.

Better Customer Experience

Affordable digital payments encourage customers to pay using M-PESA rather than cash.

Easier Payment Collection

QR Codes and STK Push simplify payment processing and reduce transaction errors.

Improved Cash Flow

Lower transaction costs mean businesses retain more revenue from everyday sales.

Why This Matters

Kenya continues to lead Africa in mobile money adoption, with M-PESA serving millions of consumers and businesses every day.

By lowering transaction costs, Safaricom is making digital payments more attractive for both merchants and customers while supporting the growth of Kenya’s cashless economy.

The revised Buy Goods tariff is expected to particularly benefit small and medium-sized enterprises (SMEs), which rely heavily on affordable digital payment solutions.

Effective Date

The new Lipa na M-PESA Buy Goods charges will come into effect on:

7 August 2026

Merchants do not need to take any action, as the new tariff will be implemented automatically.

Need More Information?

Businesses requiring additional clarification can:

• Contact their Safaricom Account Manager.
• Email [email protected] for support.

Frequently Asked Questions

When do the new Buy Goods charges start?

The revised tariff becomes effective on 7 August 2026.

Is there any fee for customer payments below KSh 500?

No. Merchants will receive customer payments of up to KSh 500 free of transaction charges.

Have charges above KSh 500 changed?

No. Existing charges for payments above KSh 500 remain unchanged.

Are till-to-mobile transfer charges changing?

Yes. Merchants will receive a 50% reduction in charges for payments made from Buy Goods tills to mobile numbers and Paybill accounts.

What is the maximum charge for payments made to tills?

Safaricom has capped these charges at KSh 100.

Conclusion

Safaricom’s latest review of the Lipa na M-PESA Buy Goods tariff is good news for Kenyan businesses. By increasing the fee-free payment threshold to KSh 500, reducing till-to-mobile charges by 50%, and capping payments to tills at KSh 100, the company is making digital payments more affordable and efficient.

The changes are expected to encourage wider adoption of cashless payments while helping merchants reduce operating costs and improve customer service.