Many Kenyans are looking for business opportunities that offer stable income and high demand.
You might have noticed that MPesa shops are everywhere—from busy towns to small villages.
But with so many MPesa agents in the country, is it still a profitable venture?
The truth is, MPesa remains one of the most lucrative businesses in Kenya. Every day, people use MPesa to send and receive money, pay bills, buy goods, and even access loans.
However, starting an MPesa business requires careful planning, investment, and a good strategy to stand out from the competition.
In this guide, you’ll learn everything you need to know about becoming an MPesa agent or sub-agent, how much capital you need, and how to run a profitable MPesa shop.
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How to Start an MPesa Business in Kenya
Before setting up an MPesa shop, you need to understand the different ways you can operate. You can either be a Safaricom MPesa Agent (Aggregator) or a Sub-agent (Sub-dealer).
1. Becoming an MPesa Agent (Aggregator)
As an MPesa agent, you work directly with Safaricom. You’ll need to meet strict requirements and make a significant initial investment. However, being an agent is more profitable because Safaricom pays you commissions directly.
Requirements to Become an MPesa Agent:
- A registered business – You need a limited company with at least three outlets.
- Initial capital investment – You need at least Ksh. 400,000, which includes float and setup costs.
- Good credit history – Safaricom will check if you have any bad financial records.
- A strategic business location – Your shop should be in a busy area with high foot traffic.
2. Becoming an MPesa Sub-Agent (Sub-Dealer)
If you don’t have enough capital to register as a full agent, you can become a sub-agent by working under a licensed MPesa agent. Many people prefer this option because it requires less investment.
Requirements to Become an MPesa Sub-Agent:
- Must work under a registered MPesa agent
- Minimum float of Ksh. 30,000
- MPesa line (The agent provides this at a cost)
- A business premise in a busy area
Sub-agents receive 80% commission, while the agent takes 20%. However, in many cases, agents pay their sub-agents less than the required percentage.
How Much Capital Do You Need to Start an MPesa Business?
The amount of capital required to start an MPesa business depends on whether you plan to operate as an agent or a sub-agent.
Agents require a significantly higher investment, while sub-agents have a lower financial entry point but share their earnings with the main agent.
Starting as an MPesa Agent
To operate as an MPesa agent, you need to meet Safaricom’s financial requirements and registration guidelines.
The initial investment includes business registration fees, branding, shop setup, and a substantial float to facilitate transactions. Here’s a breakdown of the expected costs:
- Business registration – Ksh. 15,000
- Minimum float for three outlets – Ksh. 300,000
- Branding and shop setup – Ksh. 20,000
- SIMEX (SIM replacement cards) – Ksh. 100,000
- Total capital required – Ksh. 400,000+
The high initial capital ensures that you have enough funds to operate multiple MPesa outlets and meet daily customer demands. Since agents work directly with Safaricom, they receive commissions without intermediaries, making this option more profitable in the long run.
Starting as an MPesa Sub-Agent
If you prefer a lower-cost alternative, you can operate as an MPesa sub-agent under a licensed agent.
This option requires less capital but comes with certain limitations, such as sharing commissions with the main agent.
Here’s the estimated capital needed:
- MPesa line purchase – Ksh. 10,000 – 20,000
- Minimum float – Ksh. 30,000
- Goodwill for non-aggregated line – Ksh. 15,000
- Total capital required – Ksh. 70,000+
Although starting as a sub-agent requires less investment, your earnings depend on the commission structure set by the main agent. Sub-agents typically receive 80% of the commission, while the agent keeps 20%.
Ultimately, whether you choose to operate as an agent or a sub-agent, ensuring you have sufficient working capital and float is key to running a successful MPesa business.
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How to Run a Profitable MPesa Shop in Kenya
Running a successful MPesa business requires more than just opening a shop.
Here are some key strategies to maximize your profits:
1. Choose the Right Location
The location of your MPesa shop will determine how much business you get.
Ideal locations include:
- Busy markets and shopping centers
- Near matatu stages and bus stops
- Areas with high population density
- Near supermarkets and banks
Avoid setting up your MPesa shop in areas that already have too many MPesa outlets unless you have an additional service that sets you apart.
2. Maintain Sufficient Float
Float is the cash balance you need to process transactions. If customers come to your shop and find you don’t have enough float, they will go to your competitor.
To avoid this:
- Have a reliable system for reloading your float.
- If you run out of cash, use bank agents to deposit and withdraw quickly.
- Balance your float between cash and e-money throughout the day.
3. Offer Additional Services
MPesa on its own can be profitable, but you can increase your income by offering additional services like:
- Airtime sales
- Bill payments (electricity, water, TV subscriptions)
- Selling phone accessories
- SIM card replacements and registrations
- Online banking deposits and withdrawals
These extra services attract more customers and increase your overall earnings.
4. Ensure Security and Safety
MPesa shops are a target for thieves and fraudsters. Protect yourself by:
- Installing CCTV cameras if possible.
- Keeping cash in a secure place, like a locked drawer or safe.
- Being extra careful when handling money to avoid counterfeit notes.
- Avoiding making large cash deposits at night.
Is MPesa Business Profitable in Kenya?
Yes! MPesa businesses can be highly profitable if managed well.
Here’s what you can expect:
- Small MPesa shops make around Ksh. 20,000 – 30,000 per month.
- Busy MPesa shops in high-traffic areas earn Ksh. 50,000+ per month.
- Agents with multiple outlets can make over Ksh. 100,000 per month.
Your profits depend on transaction volume, location, and how well you manage your float.
Challenges Facing the MPesa Business in Kenya
While profitable, running an MPesa shop comes with challenges, including:
- High competition – Many MPesa outlets are competing for the same customers.
- Security risks – MPesa agents are often targeted by criminals.
- Strict Safaricom rules – Failure to follow guidelines can lead to suspension of your MPesa line.
- Dependence on commissions – You don’t set your own prices; you rely on Safaricom’s commission structure.
Despite these challenges, MPesa remains one of the most profitable small businesses in Kenya.
Final Thoughts: Should You Start an MPesa Business?
If you’re looking for a reliable business with a steady income, MPesa is a great option. However, success depends on location, float management, and how well you market additional services.
If you have the capital, consider becoming an agent. If your budget is limited, start as a sub-agent and grow your business over time.
With the right approach, your MPesa business can be a profitable and sustainable venture in Kenya.
Frequently Asked Questions
1. Can I operate an MPesa shop from home?
No. Safaricom requires MPesa shops to be in a physical business location with proper branding.
2. How long does it take to start an MPesa business?
If all requirements are met, registration takes about 2-4 weeks for agents and a few days for sub-agents.
3. Can I operate multiple MPesa shops?
Yes. If you’re an agent, you must have at least three outlets to qualify. Sub-agents can operate multiple shops under different agents.
4. What happens if my MPesa line is suspended?
If Safaricom suspends your line due to rule violations, you may lose your float and your business may be shut down permanently.
