Recently M-Pesa has been getting all the major hype. It has expanded its popularity across the globe and its all for good reasons.

Talking about solving a real-life situation, over a long period of time people around the globe have been trying to figure out ways to easily and efficiently send money to persons very far away in a matter of seconds. Though there are other money transfer systems, most common is the Western Union Money Transfer or through inter-bank wire transfer.

All these systems work very well but one of the major setbacks has always been the time it takes to complete these transfers, and this is where M-Pesa comes in. Just make sure you read this article thoroughly so you don’t miss out on any of M-Pesa’s many benefits.

What Exactly is M-Pesa and How Does It Work?

Simply defined, M-Pesa is a mobile money transfer application, a service from the Safaricom Network Company. Many Kenyans are familiar with this application because it is widely used in the country.

Truthfully speaking I think M-Pesa is the driving force behind the mobile revolution that has swept across the African continent.

Generally, this is how M-Pesa works.

M-Pesa Registration

First, you have to own a registered Safaricom sim card. But that is not all; you will also need to register to be able to use it. It is free and can be done with any M-Pesa agent. All you will need is a copy of your identification card. When the registration is complete, the network will send an updated menu to your phone and you’ll be good to go.

Loading Money into M-Pesa

Once you have registered on M-Pesa, you can instantly load up some cash to your account. You hand the agent the amount you want to deposit. The agent will do this process from his or her end.

You will receive a text message to your phone from M-Pesa confirming the deposit transaction. Or money can be loaded to your phone by another person could be your relative, a friend or even a business associate.

Sending Money using M-Pesa

When you have money in your account you can easily send it to any other user of your choice. Just go to the M-Pesa menu on your phone then select the ‘Send money’ option, and then enter the phone number of the person you wish to send money to.

You will be prompted to enter your M-Pesa pin, as soon as you press Ok. Your transaction is processed and you receive a confirmation message including the name of the recipient. The recipient also receives an alerting text message confirming the amount and sender.

Paying Bills with M-Pesa

Another powerful resource is the fact that you can use it to pay your bills. This made the whole process of payment of bills and buying fight ticket a lot simpler. Just the same way you send money to other users, with codes corresponding to a particular company you can send money to pay for particular services. Thanks to this, we can avoid long queues and save the time for other things.

Withdrawing Money from M-Pesa

With money in your account, you can easily withdraw it into tangible cash. You will just visit an M-Pesa agent then proceed to transact by choosing the ‘Withdraw cash’ option, enter the agent number which is always at the M-Pesa agent where you are, and then the amount and finally your M-Pesa pin.

After the transaction is through, you will receive a confirmation text message and the agent will hand you the withdrawn amount. Your final step is to sign the transaction sheet and you are through.

M-Pesa Rates, Charges

For M-Pesa users in Kenya, having answers to burning questions centring on the mobile money transfer service is as important as utilizing the service itself.

Questions like their charges for withdrawing from an agent, cost of transferring money to an un-registered Safaricom Number, and rates are always in the spotlight. For what it’s worth, charges, fees, tariffs, and rates on M-Pesa largely depend on the amount users send or withdraw.

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Below is a detailed statistics on M-Pesa transactional charges and rates.

Mpesa Charges – Withdrawal from M-PESA Agent

Min(KSh) Max(KSh) M-PESA Charges
1 49 N/A
50 100 10
101 500 27
501 1,000 27
1,001 1,500 27
1,501 2,500 27
2,501 3,500 49
3,501 5,000 66
5,001 7,500 82
7,501 10,000 110
10,001 15,000 159
15,001 20,000 176
20,001 25,000 187
25,001 30,000 187
30,001 35,000 187
35,001 40,000 275
40,001 45,000 275
45,001 50,000 275
50,001 70,000 330

Mpesa Charges – Transfer to Unregistered Users

Min(KSh) Max(KSh) M-PESA Charges
1 49 N/A
50 100 N/A
101 500 44
501 1,000 48
1,001 1,500 58
1,501 2,500 73
2,501 3,500 110
3,501 5,000 132
5,001 7,500 163
7,501 10,000 201
10,001 15,000 260
15,001 20,000 282
20,001 25,000 303
25,001 30,000 303
30,001 35,000 303
35,001 40,000 N/A
40,001 45,000 N/A
45,001 50,000 N/A
50,001 70,000 N/A

Mpesa Charges – Transfer to other M-PESA Users

Min(KSh) Max(KSh) M-PESA Charges
1 49 FREE
50 100 FREE
101 500 11
501 1,000 15
1,001 1,500 25
1,501 2,500 40
2,501 3,500 55
3,501 5,000 60
5,001 7,500 75
7,501 10,000 85
10,001 15,000 95
15,001 20,000 100
20,001 25,000 110
25,001 30,000 110
30,001 35,000 110
35,001 40,000 110
40,001 45,000 110
45,001 50,000 110
50,001 70,000 110

Mpesa Charges – ATM Withdrawal

Min(KSh) Max(KSh) M-PESA Charges
200 2,500 33
2,501 5,000 66
5,001 10,000 110
10,001 20,000 193


This is a recent addition to the M-Pesa menu. M-Shwari is a system that works on top of M-Pesa. Users have the ability to send money from their M-Pesa account into their M-Shwari account as savings. These savings can lead to the M-Shwari user receiving a loan once in a while.

M-Pesa is also linking up with banks and allows users to link-up their bank accounts and their M-Pesa account. Through this people can now bank at the comfort of their seats. One can send or withdraw money from his or her bank account through his or her M-Pesa account.

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With the height this mobile money transfer platform has already reached, it is only bound to get higher. It is amazing how money transfer has been made easier, all I can say is that it is one of the best systems available and only the sky is the limit of what can be achieved from such fields.

Fast Facts About M-Pesa

  1. Every user’s line has a maximum amount of KSHs.100,000. They are not allowed to have more than this amount in their line.
  2. Users are only allowed to carry out a maximum Daily Transaction limit of KSHs.140,000 and a maximum per transaction limit of KSHs.70,000.
  3. Users earn what is called Bonga points whenever they carry out a transaction on the mobile phone-based money transfer and financing service.
  4. Users are barred from directly depositing money into another M-Pesa customer’s account at an agent outlet.