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You are going to understand the New Mpesa Agent Withdrawal Charges for this Year. In recent years, Mpesa has revolutionized how Kenyans handle their daily transactions. From paying bills to sending money across the country, Mpesa has become an essential part of life.

However, a new wave of changes in agent withdrawal charges has caused quite a stir. These adjustments, aimed at balancing convenience with affordability, are bound to impact how we withdraw money from agents.

As these new charges take effect, it’s essential to understand what they mean for the average user, and how they may influence our financial habits. # Mpesa Agent Withdrawal Charges

M-PESA Overview

Launched in Kenya in 2007 by Safaricom, M-PESA is a mobile-based money transfer and payment platform that has transformed how people handle financial transactions.

The service enables users to deposit, withdraw, transfer funds, pay bills, and purchase airtime using their mobile phones, eliminating the need for a traditional bank account.

M-PESA is immensely popular in Kenya, where it serves as a primary method for transferring money, paying for utilities, and conducting small business transactions. Its success has extended beyond Kenya’s borders, with the service now available in countries like Tanzania, Mozambique, and India.

The platform operates through a network of registered M-PESA agents, such as Safaricom outlets, where users can deposit money into their mobile wallets. From there, they can transfer money to other M-PESA users, pay bills, or withdraw cash at agent locations.

M-PESA has significantly boosted financial inclusion in Kenya, especially for individuals without access to traditional banking services. It has also contributed to reduced crime by minimizing the need to carry cash and helped small businesses operate more efficiently.

M-PESA Withdrawal Charges

M-PESA withdrawal charges are fees applied when a user withdraws money from their M-PESA mobile wallet, either through an agent or an ATM.

These charges are structured based on the withdrawal amount, with higher amounts attracting larger fees. Safaricom, the provider of M-PESA, regularly updates these charges to reflect market conditions and ensure fair pricing.

Here’s a breakdown of how the charges work:

Agent Withdrawal Charges: 

When a user withdraws cash from an M-PESA agent, the fee is determined by the amount withdrawn. The fees are grouped into tiers, so small withdrawals (e.g., Ksh 50–100) have lower charges, while larger withdrawals (e.g., Ksh 10,000 or more) attract higher charges. The minimum withdrawal amount also incurs a standard fee.

ATM Withdrawal Charges: 

M-PESA users can withdraw cash from participating ATMs, but this often comes with slightly higher charges than agent withdrawals. This is due to the convenience and additional infrastructure costs associated with ATM transactions.

Transaction Bands: 

Withdrawal charges are typically divided into bands. For example:

• Ksh 100–500 may have a lower fee, say Ksh 10.
• Ksh 500–1,000 could attract a fee of Ksh 27.
• Ksh 10,000 and above could have a higher fee, around Ksh 300. The charges increase progressively as the withdrawal amount grows.

Free Transactions:

 In some cases, M-PESA runs promotions where small transactions, like withdrawals of Ksh 100 or less, are free to encourage mobile money use. Additionally, certain user-to-user transfers within set limits may also incur no charges.

Special Considerations:

• Withdrawal fees are only applicable when withdrawing money. Sending money to other M-PESA users or paying bills does not attract a withdrawal fee but may incur a different transaction fee.
• M-PESA often revises these charges, especially in response to regulatory guidelines or market changes. The latest rates are always available on the Safaricom website or through the M-PESA app.

These charges are a crucial part of Safaricom’s revenue model, but they also ensure that agents earn commissions while maintaining an affordable and accessible mobile money ecosystem for Kenyans.

New Mpesa Agent withdrawal Charges in Kenya

M-PESA recently updated its withdrawal charges, which impact how much users pay when withdrawing money from an M-PESA agent. These charges vary based on the amount being withdrawn, with higher amounts attracting higher fees.

The new charges are designed to strike a balance between affordability and sustainability, ensuring both the service’s accessibility for users and fair commissions for agents.

The charges are structured in tiers, with specific fees for different transaction amounts. Safaricom reviews and adjusts these fees periodically to align with market conditions, regulatory guidelines, and operational costs.

Table 1: New M-PESA Agent Withdrawal Charges (for Personal Accounts)

Amount Withdrawn (Ksh)	Withdrawal Charges (Ksh)
1 – 49	N/A
50 – 100	10
101 – 500	27
501 – 1,000	28
1,001 – 1,500	28
1,501 – 2,500	28
2,501 – 3,500	50
3,501 – 5,000	67
5,001 – 7,500	84
7,501 – 10,000	112
10,001 – 15,000	162
15,001 – 20,000	210
20,001 – 35,000	270
35,001 – 50,000	300
50,001 – 150,000	300

Table 2: New M-PESA Agent Withdrawal Charges (for Business Accounts)

Amount Withdrawn (Ksh)	Withdrawal Charges (Ksh)
1 – 49	N/A
50 – 100	10
101 – 500	28
501 – 1,000	28
1,001 – 1,500	30
1,501 – 2,500	30
2,501 – 3,500	55
3,501 – 5,000	70
5,001 – 7,500	87
7,501 – 10,000	115
10,001 – 15,000	165
15,001 – 20,000	215
20,001 – 35,000	275
35,001 – 50,000	310
50,001 – 150,000	310

You should know that:

1. Withdrawals Under Ksh 50: Withdrawals below Ksh 50 are not allowed.
2. Standardized Charges: The charges are fixed for various transaction bands, making it easier for users to anticipate fees based on the amount they wish to withdraw.
3. Business vs. Personal Accounts: There are slight differences in charges between personal and business accounts, with business accounts sometimes attracting slightly higher fees for large withdrawals.

How to calculate M-pesa agent commission? 

To calculate M-PESA agent commissions, follow these steps:

Understand Commission Tiers: 

M-PESA agents earn commissions based on specific transaction types, mainly deposits and withdrawals. Safaricom sets commission rates according to transaction amounts, with different rates for various transaction brackets. Higher transaction amounts often attract higher commissions.

Commission for Deposits: 

Agents typically earn a fixed commission for deposits. The commission is calculated based on the amount deposited by the customer. This is usually a fixed rate for each transaction range, e.g., Ksh 10 for a Ksh 1,000 deposit.

Commission for Withdrawals:

 The withdrawal commission is also structured in tiers, where the agent earns a percentage of the withdrawal amount or a fixed fee for certain transaction bands. For example, withdrawing Ksh 1,000–2,500 might earn the agent Ksh 20.

Obtain the Official Commission Structure: 

Safaricom provides an updated M-PESA agent commission structure that details the commissions for different transaction bands. You can access this from your Safaricom business account or inquire at a Safaricom office.

Calculate the Commission:

 Once you have the commission structure, calculate the agent commission by:

• Identifying the amount transacted (deposit or withdrawal).
• Referring to the commission rate applicable to that amount.
• Multiplying the rate by the number of transactions processed in that band.

Example:

If the commission for a Ksh 2,000 deposit is Ksh 20, and the agent processes 50 such transactions in a day:

• Daily commission = 50 transactions x Ksh 20 = Ksh 1000.

For withdrawals, if the agent earns Ksh 20 for each transaction between Ksh 1,000 and Ksh 2,500, and they process 40 transactions:

• Daily commission = 40 transactions x Ksh 20 = Ksh 800.

Finally, sum up the commissions from deposits and withdrawals to get the total daily commission.

The commission structure can vary periodically, so always refer to the latest one provided by Safaricom.

What is the new limit for M-PESA?

The new limits for M-PESA transactions, as updated by Safaricom, are as follows:

1. Daily Transaction Limit:
   The maximum amount of money you can transact in a single day via M-PESA is Ksh 500,000.
2. Per Transaction Limit:
   The maximum amount of money you can send or withdraw in a single transaction is Ksh 150,000.
3. Account Balance Limit:
   The maximum balance that can be held in an M-PESA account at any time is Ksh 500,000.

These updated limits are aimed at accommodating the growing demand for mobile money services, especially for larger transactions by businesses and individuals.

Conclusion

As Mpesa continues to innovate, the changes in agent withdrawal charges signal an evolving financial landscape. While the increased charges might seem inconvenient for some, they also highlight the need to adapt to a more digital future where mobile money services continue to expand.

With these new fees, Kenyans will need to reconsider how often they visit agents and explore more cost-effective options. In the end, the power of Mpesa remains in its accessibility and ease of use, ensuring that despite these changes, it will continue to be a crucial part of Kenya’s economy.