The verdict in three sentences
In Kenya, integrating M-Pesa via the Daraja API is free, but it requires development, and an aggregator like Flutterwave adds 3.8% on international cards. The often-forgotten line item is the monthly reconciliation, which costs human time or a dedicated module. In Senegal, a multi-operator gateway (Wave, Orange Money, card) starts at 250,000 FCFA setup and charges 1.5 to 3% depending on the payment mix.
Gateway pricing grid Kenya 2026
Gateway pricing reads across two columns: the one-shot setup (development + configuration) and the variable fees per transaction. Here are the 2026 orders of magnitude.
| Configuration | One-shot setup | Variable fees |
|---|---|---|
| M-Pesa Daraja only | Free API (3-6 dev days) | ~0.5 – 1.5% |
| M-Pesa + Airtel Money | KES 30,000 – 80,000 dev | ~1 – 1.5% |
| M-Pesa + card (Flutterwave) | KES 60,000 – 150,000 | 3.8% international |
| Multi-method aggregator | KES 80,000 – 180,000 | 1.5 – 3.8% |
| Auto reconciliation module | +KES 20,000 – 40,000 | — |
| Manual reconciliation (time) | — | ~2 h/month |
Reconciliation is the hidden cost: without an automatic module, an accountant spends 2 to 4 hours a month matching M-Pesa and card statements with orders.
Kenya vs Senegal: setup and variable fees
| Criterion | Kenya (M-Pesa/Flutterwave) | Senegal (Wave/OM/card) |
|---|---|---|
| Mobile money setup | Free (Daraja) | 250,000 – 500,000 FCFA |
| Mobile money fees | ~0.5 – 1.5% (M-Pesa) | 1 – 1.5% |
| International card fees | 3.8% (Flutterwave) | 2.9 – 3.9% |
| Subscription | 0 | 0 |
| Settlement | T+1 (M-Pesa) | T+1 to T+2 |
| Reconciliation cost/month | Module or manual | Module or manual |
The Daraja M-Pesa API is free to integrate, but it demands development: "free" is paid in developer-days, often 3 to 6 days for a reliable STK Push.
Mini case study
Wanjiru, who runs a cosmetics store in Nairobi, picks an M-Pesa + card gateway for KES 120,000 of setup. She does 400 orders/month at KES 3,000, i.e. KES 1,200,000 of revenue. Average fees at 1.8% = KES 21,600/month. She adds a reconciliation module at KES 30,000 that saves 3 hours of accounting per month. Over a year, the module easily pays for itself against the hourly cost and the data-entry errors avoided.
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FAQ
What is the minimum setup to sell online in Kenya?
An M-Pesa Daraja integration is free at the API level, but budget 3 to 6 developer-days for a reliable STK Push. You add cards later when volume justifies it, without rebuilding.
Do fees vary by payment method?
Yes. M-Pesa sits around 0.5 to 1.5%, while international cards via Flutterwave reach 3.8%. Your gateway's "average" rate therefore depends on your real customer mix.
Why pay for a reconciliation module?
Because manual reconciliation costs 2 to 4 hours a month and generates errors. An automatic module pays for itself once you pass a few hundred monthly orders.
Does free M-Pesa mean free integration?
No. The Daraja API is free but integration needs 3 to 6 developer-days for STK Push and reliable webhooks. "Free" translates into development cost.
Let's talk about your project. We'll size your M-Pesa or Wave gateway to your real mix and volume. 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.
