Updated 18 October 2026
Lipa na M-Pesa Buy Goods is how most Kenyans pay at shops, supermarkets, restaurants and kiosks. For customers it is usually free, and for merchants it is one of the cheapest ways to accept payments. Understanding exactly who pays what helps shoppers avoid surprise charges and helps business owners price their goods properly. This guide sets out the charges for both sides, with examples and practical tips.
Charges at a Glance
| Item | Charge |
|---|---|
| Customer paying a Buy Goods till | Free in normal use |
| Merchant, collections up to KSh 500 | Free |
| Merchant, collections above KSh 500 | 0.55%, capped at KSh 200 |
| Business Till paying another till | 0.27%, capped at KSh 200 |
What Customers Pay
Paying a Buy Goods till is free for customers in normal use. You enter the till number and amount, confirm with your PIN, and the merchant receives the money. The main exception Safaricom notes is some fuel stations, where a customer charge can apply. The confirmation screen always shows any fee before you enter your PIN, so check it.
What Merchants Pay
The merchant pays the cost of receiving the payment. Collections up to KSh 500 are free for the merchant. Above KSh 500, the merchant pays 0.55% of the amount, capped at KSh 200 per transaction.
Examples
- A KSh 300 sale costs the merchant nothing.
- A KSh 2,000 sale costs the merchant KSh 11.
- A KSh 10,000 sale costs the merchant KSh 55.
- Any sale large enough to hit the cap costs KSh 200, no matter how big.
Paying Another Till From a Business Till
Merchants with an M-Pesa Business Till can pay suppliers’ tills directly. Moving money from one Business Till to another costs 0.27%, capped at KSh 200. This is often cheaper than withdrawing cash and paying in person.
Buy Goods Versus Send Money
When customers send money to a personal number instead of paying a till, the customer pays the send money fee. Asking customers to pay through a till shifts the small cost to the merchant, which many customers prefer. It also gives the merchant cleaner records. Compare with our guide to M-Pesa send money charges.
Tips for Merchants
- Price with the fee in mind on high value items. A 0.55% fee is small but adds up on thin margins.
- Enjoy free small sales. For many sales under KSh 500, a till costs nothing.
- Display the till number clearly so customers do not send money to the wrong number.
- Pay suppliers from your till to avoid withdrawal fees.
- Reconcile daily using the M-Pesa Business App or statements.
Tips for Customers
- Check the name that appears before confirming, to be sure you are paying the right business.
- Keep the confirmation message as your receipt.
- If a shop asks you to pay a fee on top for using a till, you can ask why, since normal till payments are free for customers.
Choosing the Right Payment Option
Small traders may prefer Pochi la Biashara, while businesses that need account numbers may need a paybill. Our Pochi, till or paybill comparison explains which fits.
Working Out Your Monthly Cost as a Merchant
To estimate what accepting till payments costs you each month, look at your statement and separate sales of KSh 500 and below from larger ones. Small sales cost nothing. For larger sales, multiply the total by 0.55%, remembering that any single sale big enough to hit the cap costs only KSh 200. For most small and medium shops, the total is far lower than the cost and risk of handling cash, such as theft, counterfeit notes, trips to the bank and time spent counting. Many owners find that encouraging till payments pays for itself in safety and accurate records alone.
Common Problems
Customer paid the wrong till. The customer should contact Safaricom quickly with the transaction code to request a reversal.
Payment not showing. Ask for the transaction code and search your till statement. Network delays are usually short.
Frequently Asked Questions
Do customers pay to use Lipa na M-Pesa Buy Goods?
No, in normal use. Some fuel stations are an exception.
What does a merchant pay?
Nothing up to KSh 500, then 0.55% capped at KSh 200.
What is the maximum merchant fee?
KSh 200 per transaction.
Is paying a supplier’s till cheaper than withdrawing cash?
Often, yes. Till to till costs 0.27%, capped at KSh 200.
Where can I see the fee before paying?
On the confirmation screen before you enter your PIN.
Prefer WhatsApp? Follow Business Radar on WhatsApp
Weekly, free. We only use your email for this newsletter and you can unsubscribe in one click. Privacy policy.
