Have you thought about starting an Mpesa Agency business in Kenya?
Would you want to know the total costs involved in the startup and the commissions paid to Mpesa agents?
Well, today in Nbi Business Ideas we take you through the Mpesa business agent in Kenya — detailing the facts that matter in the Mpesa agency business.
And, assisting you with the ropes to begin your chain of Mpesa sub-agent shops.
Are you ready to learn more?
Here’ How the Mpesa Business Works
As a verified Mpesa agent, your job will be simply to receive deposits from customers, register new customers for Mpesa, and also help them withdraw money from your agency when they want.
You can get into the Safaricom Mpesa business as a super-agent in Kenya if you can maintain a float of minimum KES. 500,000.
Or, you can simply join the business as an Agent/Aggregator
If you join Mpesa agent as an aggregator you will be responsible for: –
- Recruiting your sub-agents
- Helping sub-agents fulfill conditions of operations laid out by Safaricom
- Operating several till outlets
Requirement to become a Mpesa Agent/Aggregator
- Be a registered Limited company able to operate a minimum of 3 agent shops under the same company name.
- The agent must finance Ksh. 100,000 for the simex (sim replacement cards)
- Must constantly maintain a minimum M-Pesa Float of Ksh. 100,000 per store
- Agent shops must also at least be spread in two different counties.
How to Become a Mpesa Sub-agent
Mpesa sub-agent shops are the typical Mpesa shops that you see everywhere in your locality.
To become a Mpesa sub-agent, it is simple, an Agent will recruit you, and you will then operate under them.
This is how sub-agent stores should work.
- The sub-agent is first recruited to work under the agent, but; his line is aggregated — meaning that the sub-agent shop is registered directly by Safaricom PLC.
- The Sub agent then obtains a till to carry out Mpesa transactions.
- The sub-agent is also required to get store management till, which is used to handle the float. You can get this at any KCB bank. Note — Safaricom will deposit your monthly earnings and commissions in this account
- You need to maintain a minimum Mpesa float of Ksh. 30,000
- You get about 80% commission, while the agent who recruited you to the business receives 20%. These commissions are transmitted directly by Safaricom.
This is how Mpesa sub-agent stores work.
Mpesa agencies recruit sub-agents shops and treat them as their own.
They intentionally fail to register sub-agent shops with Safaricom.
This carries away the privilege of sub-agents receiving their commissions direct from Safaricom, which now means that the agents become bosses to sub-agents.
They determine what to pay sub-agents.
It could be ranging anything from 60% commission up to 80%, but it is mostly 70%.
Disadvantages of not having your own line aggregated by Safaricom
- Agents determine what float they want you to maintain. Often about Ksh. 100,000 per sub-agent store
- You lose control of your float as the Agent manages it.
- If an mpesa agent is found on the wrong side of Safaricom’s regular operation rules and the till number is closed, your float gets locked in too.
- Agents charge a goodwill to give tills to sub-agents. It could be anything from about Ks 15,000 in Kisumu and up to Ksh 100,000 in Nairobi.
How much commission can an Mpesa sub-agent earn in a month?
The total amount of money a Mpesa agent makes per month depends on factors like: –
- The percentage of Mpesa deposits via a vis the Mpesa withdrawals
- Population in your operating area
- Mpesa registrations made by subagent
On an average, a sub-agent operating with a float of Ksh30,000 can make an estimated monthly commission of Ksh. 13,000
Costs of starting a Mpesa sub-agent business
- Mpesa float – Ksh. 30,000
- Rent/premises – Ksh. 3,000
- Branding – Ksh. 3,000
- Goodwill for a non-aggregated till – Ksh. 15,000
- Employee salary – Ksh. 4,000
- You need an average of about Ksh55,000 to start an Mpesa – sub-agent store.