The verdict in three sentences
In 2026, M-Pesa still dominates Kenyan payments, and the Till vs Paybill choice quietly sets your real cost. Buy Goods (Till) is free to the customer and tiered for the merchant, while Paybill suits bills and split accounts but carries its own withdrawal dynamics. The key is matching the product to your flow — retail checkout leans Till, structured invoicing leans Paybill.
Till vs Paybill: the 2026 comparison
Figures below are 2026 orders of magnitude via Lipa na M-Pesa; confirm against your tariff band and volume.
| Feature | Till (Buy Goods) | Paybill |
|---|---|---|
| Customer fee | KES 0 | KES 0 (Lipa na M-Pesa) |
| Merchant charge | Tiered by amount | Tiered, plus account nuances |
| Best for | Retail checkout | Bills, split accounts, invoices |
| Settlement to bank | T+1 typical | T+1 typical |
| Account reference | Not needed | Account number required |
Quick read: Till is simplest for shop checkout with no customer fee, while Paybill shines when you need an account reference or want to split incoming funds across accounts.
Limits and withdrawal costs to know
Fees are not the only constraint: transaction and daily limits shape large baskets.
| Item | 2026 order of magnitude | Merchant impact |
|---|---|---|
| Per-transaction limit | up to KES 250,000 | Blocks very large sales |
| Daily limit | up to KES 500,000 | Caps daily volume |
| Withdrawal to bank | Flat or tiered | Cuts net received |
| Settlement delay | T+1 typical | Cash-flow tension |
| Reversal handling | Time-boxed | Affects disputes |
Consequence: a single sale above KES 250,000 must be split or moved to card, so plan a fallback rail for high-ticket items.
Mini case study
Wanjiku runs a homeware shop in Nairobi taking 200 orders a month at KES 3,000 (KES 600,000 volume). On a Till at an effective merchant rate of, say, 1.5%, she pays about KES 9,000 in fees. If she pushed customers to a card gateway at ~3%, she would pay KES 18,000 — double. Her mix: Till as the default for in-shop and online retail, card only for customers who insist or exceed M-Pesa limits.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
Is Till always cheaper than Paybill?
Not always — both are tiered, and the effective cost depends on your average ticket. Till wins on simplicity for retail; Paybill wins when you need an account reference or fund splitting.
Does the customer pay a fee on Lipa na M-Pesa?
No. Both Till and Paybill under Lipa na M-Pesa are free to the paying customer, so the cost sits with the merchant tariff band.
What are the transaction limits?
In 2026, per-transaction limits reach around KES 250,000 with daily ceilings near KES 500,000. Above that you must split payments or switch to a card rail.
How fast is settlement to my bank?
Settlement is typically T+1. On KES 600,000 monthly volume, each extra day of delay ties up around KES 20,000 in working capital.
Can I offer both M-Pesa and cards?
Yes, and you should. Default to M-Pesa Till for the lowest cost, and keep a card gateway for high-ticket orders and international customers.
Let's talk about your project. We configure Till, Paybill and a card fallback so you collect at the lowest real cost in Kenya. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
