The verdict in three sentences
In Nairobi in 2026, an M-Pesa Till Number (Buy Goods) is typically free to the buyer while the merchant pays a tiered Buy Goods fee, with same-day to T+1 settlement. Paybill is built for bills and can pass a customer charge of up to KSh 105 per band, plus merchant transaction costs. Picking Till vs Paybill by your basket size and who bears the fee protects both margin and conversion.
Till vs Paybill fee grid
The figures below are a 2026 order of magnitude for a standard Kenyan merchant. Confirm your Safaricom tariff, since Buy Goods and Paybill grids differ and are periodically revised.
| Transaction band | Till (Buy Goods) merchant fee | Paybill customer charge |
|---|---|---|
| KSh 1 - 100 | ~0 | ~0 |
| KSh 101 - 500 | ~0.5 % | KSh 5 - 7 |
| KSh 501 - 1,000 | ~0.55 % | KSh 12 - 15 |
| KSh 1,001 - 2,500 | ~0.55 % | KSh 20 - 30 |
| KSh 2,501 - 5,000 | ~0.55 % | KSh 34 - 50 |
| KSh 5,001 - 70,000 | capped band | up to KSh 105 |
For an average basket of KSh 2,500, a Till at ~0.55 % costs about KSh 13.75 to the merchant, while Paybill could push KSh 20-30 onto the customer. Over 400 sales/month, Till fees are roughly KSh 5,500.
Real cost by volume
The table below costs monthly fees for a Nairobi merchant, average basket KSh 2,500, Till fee ~0.55 %.
| Sales/month | Turnover | Till fee (~0.55 %) | Settlement |
|---|---|---|---|
| 200 | KSh 500,000 | KSh 2,750 | Same day - T+1 |
| 400 | KSh 1,000,000 | KSh 5,500 | Same day - T+1 |
| 800 | KSh 2,000,000 | KSh 11,000 | Same day - T+1 |
| 1,500 | KSh 3,750,000 | KSh 20,625 | Same day - T+1 |
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Mini case study
Wanjiru, who runs a hardware shop in Nairobi's CBD, does KSh 1,000,000/month at an average basket of KSh 2,500, i.e. 400 transactions. On a Till at ~0.55 % she pays about KSh 5,500 in merchant fees, and the buyer pays nothing. Had she used Paybill and passed KSh 25 per transaction to customers, she risks losing price-sensitive buyers on small tickets. By keeping Till for retail and Paybill only for large recurring invoices, she preserves conversion and saves an estimated KSh 10,000/month in lost-sale friction plus fees.
FAQ
Does the customer pay to buy from me? On a Till (Buy Goods), the buyer typically pays nothing; the merchant absorbs the tiered fee. On Paybill, a customer charge often applies, which can deter small purchases.
Why do my fees change per sale? Because Buy Goods and Paybill are banded: small tickets sit in low bands, larger ones hit capped bands, so the effective rate shifts.
Is settlement instant? M-Pesa Buy Goods often settles same day to T+1 for standard merchants; confirm your Safaricom agreement for exact timing.
Can I integrate M-Pesa on my website? Yes, via the Daraja API (STK Push, C2B, B2C), which lets your checkout trigger a payment prompt directly on the customer's phone.
How do I cut costs legally? Use Till for retail to keep the buyer fee at zero, reserve Paybill for large invoices, and negotiate bands once volume grows.
Let's talk about your project. We integrate M-Pesa Daraja (Till and Paybill) with tested callbacks and automatic reconciliation for your store. 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.
