How To Become An Mpesa Agent In Kenya
Are you thinking of becoming an Mpesa agent? Join me and let’s learn how to become a Mpesa agent and walk through each stage of the procedure.
Mpesa is available in nearly every local residential area, enabling people with money transactions and cash deposits. Mpesa has made life easier and more convenient for Kenyans. Mpesa agents are in high demand because, unlike banks, most individuals can use them.
Becoming an M-Pesa agent in Kenya involves a few steps and requirements. M-Pesa is a mobile money service offered by Safaricom, Kenya’s leading mobile network operator. As of my last update in September 2021, the process might be subject to changes, so it’s best to verify with Safaricom or relevant authorities for the most up-to-date information.
how to become a Mpesa agent
For you to start the Mpesa agent business you need to do the following.
- Fill out the application form for the Mpesa Agent store.
- Provide your Kenya Police Certificate of Good Conduct.
- Apply the Extra till.
- Fill up the agent extra shop application form.
- Have well-completed management till the application form.
- Send all of these documents to a Safaricom office near you.
- Pay the necessary registration payments.
- Get your Mpesa agent’s license.
- Learn how to provide Mpesa services to clients.
Mpesa Agent Requirements
Here are the requirements for becoming a Mpesa agent in Kenya.
- Have a registered business with at least 3 outlets ready to offer Mpesa services.
- Your business must have been operational for a minimum of 6 months.
- Provide an incorporation certificate.
- Submit certified documents to the commissioner of oaths.
- Mpesa demands a minimum float of Ksh. 30,000.
- Documents such as National Identity Card.
- Certificate of good conduct.
- Business name.
Documents required for Mpesa Agent
- Completed agent application forms
- Certificate of incorporation
- Original Police certificate of good conduct
- A recently issued Form CR12 or any equivalent form applicable for the past three months ( A Form CR12, which is an official confirmation or Certificate issued by the Registrar of Companies in Kenya, contains essential information about a company’s directors and shareholders.)
- Copies of IDS of office administrators and primary assistants
- Proof of minimum 6 months of trading history
- Duplicates of your VAT and PIN certificates if applicable.
- List of outlets
- Business permits for each of the outlets
For more clarity on the documents required and all other requirements kindly click here.
A step-by-step guide to becoming an M-Pesa agent
Step 1. Meet the Requirements
Before even proceeding with the process, first, you need to make sure that you meet the required qualifications, and that you possess all the documents needed. Below are several fundamental requirements:
- You need to be a Kenyan citizen or a registered Kenyan business entity.
- You must have a valid and registered business with a physical location.
- You should have enough capital to meet the minimum float requirements set by Safaricom.
- Your business location should be in a strategic area with a potential customer base.
Step 2. Business Registration
If you don’t have a registered business, you’ll need to register your business entity with the relevant authorities.
Step 3. Prepare the Required Documents
If you already met the requirements and have a business, now it’s time to prepare your documents so you can get started.
- Copy of your identification (National ID for individuals or Certificate of Incorporation for businesses).
- Copy of your business registration documents.
- Passport-sized photos.
- Business permits
- Original Police certificate of good conduct
Step 4. Visit Safaricom
Go to the Safaricom headquarters or any of their regional offices to express your interest in becoming an M-Pesa agent. You can find the necessary contact information on their official website.
Step 5. Application Process
Safaricom will provide you with the necessary application forms. Ensure to accurately complete the forms and attach all the necessary documents before submitting them.
Step 6. Location Assessment
After submitting your application, Safaricom representatives will visit your business location to assess its suitability as an M-Pesa agent outlet. They will consider factors like footfall, security, and potential for transactions.
Step 7. Training
If your application is successful and your location is approved, you’ll undergo training on how to operate as an M-Pesa agent. The training covers the usage of the system, handling customers, conducting transactions, and sim replacements.
Step 8. Agreement Signing
Once you’ve completed the training, you’ll sign an agreement with Safaricom. This agreement outlines the terms and conditions of your agency, including commissions, responsibilities, and any other relevant details.
Step 9. Set Up the Outlet
After signing the agreement, you’ll need to set up your M-Pesa outlet with the necessary equipment, such as a Point of Sale (POS) device, float, and other required materials.
Step 10. Launch and Marketing
Once everything is set up, you can officially launch your M-Pesa agent outlet. Promote your services to attract customers and drive transactions.
Step 11. Ongoing Support
Safaricom will provide you with ongoing support, and you’ll have access to their agent helpline for assistance.
How to make money as an M-Pesa agent
M-Pesa agents earn money by providing financial services to customers through the M-Pesa platform. As an agent, they act as intermediaries between the customers and the M-Pesa service provider (Safaricom) to facilitate various transactions. Here’s how M-Pesa agents earn money:
1. Transaction Commissions
Agents earn commissions on various transactions conducted by customers at their agent outlets. These transactions include:
- Cash deposits: When customers deposit money into their M-Pesa accounts through the agent.
- Cash withdrawals: When customers withdraw money from their M-Pesa accounts using the agent’s services.
- Person-to-person transfers: Agents earn a commission on the fees charged for transferring money from one M-Pesa user to another.
- Paybill and Buy Goods services: Agents receive commissions on transactions made through M-Pesa’s Paybill and Buy Goods services, which allow customers to pay bills and make purchases at merchants using their M-Pesa accounts.
To learn about the profits and the M-Pesa commission rates click HERE.
You can also check out and learn how to boost your commission as a Mpesa agent.
2. Float Management
M-Pesa agents manage float, which is the e-money they keep on hand to facilitate transactions for their customers. Agents typically buy electronic float from the M-Pesa service provider at a lower value and then sell it to customers when they make cash deposits. The agent earns a small profit on this float management.
3. Customer Services
Agents may charge service fees for assisting customers with M-Pesa transactions or providing other related services, such as helping customers register for M-Pesa or resolving account-related issues.
Additionally, the success and profitability of an M-Pesa agent largely depend on the number of transactions they handle and the volume of business conducted at their outlet.
Frequently asked questions
1. How much profit do Mpesa agents make?
The success and profitability of an M-Pesa agent largely depend on the number of transactions they handle and the volume of business conducted at their outlet. Mpesa agent commissions range from Ksh. 4 to Ksh. 200 for each transaction, depending on the amount of cash to be transacted.
2. How much do I need to start Mpesa business in Kenya?
The amount of money needed to start an M-Pesa business in Kenya can vary depending on the type of business and location. However, a rough estimate for starting a basic M-Pesa business is around Ksh 100,000 to Ksh 150,000. This should cover the cost of registration, equipment, and initial float.
