The verdict in three sentences
In Kenya in 2026, the same product sold through different wallets carries very different merchant fees. M-Pesa Till (Buy Goods) sits near 0.55 % on lower tiers, Paybill and higher tiers cost more, and Airtel Money runs around 1 %. For a multi-channel seller the golden rule is to route each payment to the cheapest available rail for that customer.
Merchant fee map by channel — 2026 estimate
| Channel | Typical use | Estimated merchant fee | Cheaper alternative |
|---|---|---|---|
| M-Pesa Till (Buy Goods) | Retail POS | ~0.55 % (lower tiers) | — |
| M-Pesa Paybill | Bills / e-commerce | ~1.0-1.5 % | Till for retail |
| Airtel Money | Wallet payments | ~1.0 % | M-Pesa Till |
| Card (local) | Online card | ~2.9 % | M-Pesa |
| Bank transfer (PesaLink) | High-value | Flat 20-100 KES | Till for small |
Cost for 2,000,000 KES monthly revenue
Simulation of 2,000,000 KES collected entirely through one channel. 2026 estimate.
| Channel | Effective rate | Monthly fees | Annual fees |
|---|---|---|---|
| M-Pesa Till | 0.55 % | 11,000 KES | 132,000 KES |
| M-Pesa Paybill | 1.2 % | 24,000 KES | 288,000 KES |
| Airtel Money | 1.0 % | 20,000 KES | 240,000 KES |
| Card | 2.9 % | 58,000 KES | 696,000 KES |
Annual gap between M-Pesa Till and card: 564,000 KES for a single outlet.
Limits and cash-out to watch
The headline rate is only part of the story. Daily limits and cash-out to bank affect your cash flow.
| Criterion | M-Pesa | Airtel Money | Card | PesaLink |
|---|---|---|---|---|
| Estimated daily limit | ~500,000 KES/txn | ~300,000 KES/txn | Per issuer | ~999,999 KES |
| Settlement to bank | T+1 | T+1 | T+2 | Instant |
| Withdrawal fee to bank | 0-0.5 % | 0.5-1 % | Included | Flat |
Mini case study
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Wanjiru sells sportswear online from Nairobi and ships countrywide. On 3,000,000 KES monthly revenue she used Paybill for everything (1.2 %): 36,000 KES in fees. By routing retail-style orders through M-Pesa Till (0.55 %) and keeping Paybill only for bills, her blended rate drops to 0.8 %: 24,000 KES. Monthly savings: 12,000 KES, about 144,000 KES a year.
FAQ
Can I accept several wallets without many integrations?
Yes, through an aggregator or a unified payment module that exposes one API and routes internally to M-Pesa, Airtel or card. That avoids maintaining four separate integrations.
Why is M-Pesa Till often the cheapest?
In 2026 the Till (Buy Goods) tariff starts near 0.55 % on lower tiers to encourage retail adoption. It is a real cost lever versus Paybill for retail-style orders.
Do daily limits block large sales?
Above roughly 500,000 KES per transaction you need an enhanced merchant profile or you split payments. For large B2B baskets, card and PesaLink are useful safety nets.
Does the headline rate include cash-out?
Almost never. Add 0.5 to 1 % for withdrawal to your bank when comparing true all-in cost between channels.
Let's talk about your project. We build multi-wallet routing that automatically picks the cheapest rail for each customer. 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.
