How to Apply for a Lipa na M-Pesa Paybill Number

Updated 25 October 2026

A paybill lets customers pay you with a business number and an account number, so you can match every payment to the right person, house, student or invoice. Schools, landlords, SACCOs, utilities, hospitals and service businesses rely on paybills because they make reconciliation far easier than a till or personal number. This guide explains who needs a paybill, the documents required, how to apply and how to set it up so payments are easy to track.

Who Needs a Paybill

• Schools, using student numbers as account numbers.
• Landlords and property managers, using house or unit numbers.
• SACCOs and chamas, using member numbers.
• Service businesses that issue invoices, using invoice numbers.
• Online businesses that want automatic payment confirmation through Safaricom’s APIs.

Paybill or Till?

A till suits walk in sales where you only need to know that money arrived. A paybill suits businesses that need to know who paid for what. Our Pochi, till or paybill comparison compares the options in detail.

How to Apply

• Online through Safaricom’s M-Pesa for Business portal.
• In person at a Safaricom shop with your signed form and documents.

Documents

Paybill applications are mostly made by registered businesses and organisations, so have your registration documents and KRA PIN ready. If you need to register a business first, our guides on registering a business name and getting a company KRA PIN on Business Radar will help.

Step by Step: Online Application

1. Open the M-Pesa for Business portal and choose to apply for a paybill.
2. Select your organisation type and fill in business details.
3. Upload documents and enter the contact person’s details.
4. Choose how you want to receive settlement, for example to a bank account.
5. Submit and keep the reference number.

Choose a settlement bank account in the business’s name, not a personal account, so your records stay clean for tax and audits.

After Approval

1. You receive your business number and portal access details.
2. Set up administrator and operator users on the M-Pesa organisation portal.
3. Decide on your account number format and tell customers clearly what to use.
4. Test with a small payment.

Setting Account Numbers That Work

Account numbers are how you match payments. Keep them simple and unique, such as house numbers for tenants or admission numbers for students. Print the format on invoices, fee structures and tenancy agreements. Payments with wrong account numbers still reach you, but they take time to trace, so clear instructions save work.

Paybill Charges

Paybill tariffs depend on how the business sets up its account. Some businesses absorb the fee so customers pay nothing extra, while others have customers pay a fee shown on the confirmation screen. Discuss the options with Safaricom when applying. Customers can see any charge before confirming, as explained in our guide to paying a paybill.

Automating Payment Confirmation

Larger businesses connect their paybill to their own systems through Safaricom’s Daraja APIs, so payments update customer accounts automatically. A developer can set this up. Our M-Pesa APIs guide on Business Radar explains the basics.

Reconciling Paybill Payments

Download your paybill statement from the organisation portal regularly, daily for busy businesses and weekly for smaller ones. Match each payment’s account number to your customer list. Set a routine for payments with wrong or missing account numbers: contact the payer using the phone number in the statement, confirm what the payment was for and update your records. Keeping a clean record protects you in disputes and makes audits and tax filing much easier.

Communicating With Customers

Put the paybill number and account format on every invoice, receipt, fee structure and noticeboard. When fees or rent change, remind customers of the payment details at the same time. A short SMS or WhatsApp message before due dates reduces late and misdirected payments.

Frequently Asked Questions

Can an individual get a paybill?

Paybills are mainly for registered businesses and organisations. Individuals usually start with a till or Pochi.

How long does approval take?

It depends on document completeness and verification.

Can customers pay my paybill from Airtel Money?

Yes, Airtel Money can pay M-Pesa paybills.

How do I get money out of my paybill?

Through the organisation portal, usually to your bank account.

Can I use one paybill for several branches?

Yes, with account numbers or separate setups for each branch.