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How much does it cost to start an mpesa business? What are the legal requirements to becoming an agent of one of the biggest mobile services providers in Kenya?

It one of the booming businesses in Kenya that you can start either as side or main hustle.

Here is what you need to know about how to start an mpesa business in Kenya.

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How To Start Mpesa Business 2017

1. Seed Capital

When planning to start an M-pesa shop you need to have around 100K as float cash, rent money, branding as well as money to buy the aggregated M-pesa lines.

After having all these things established, Safaricom will then start paying you a commission for every transaction you make like registering M-pesa users, withdrawals, airtime sales, cash deposits.

The disadvantage of running an M-pesa shop is that sometimes the earnings can be as low as 4 shillings but if you are in a good location, you can end up making over 30K per month.

2. You Need An Agent

As a sub-dealer, you require the help of an agent. An agent helps you in acquiring an M-Pesa line and also ensures that you fulfil all the requirements needed before you sign a contract to start the business.

Besides this Safaricom also requires the following from the Agent:

1.Company Registration

2.At least 3 outlets ready to offer M-Pesa services

3. At least Sh 300,000 made available for each outlet for float and sim replacement cards

4. Be in trading for at least 6 months

5.Have qualified staff to run the outlets

6.Have an ETR Machine

7. Have a Computer

8. Have a Printer

9. Have internet connectivity, among other technical requirements.

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3. You Need To Have A Branded Shop

It is close to impossible to operate an M-Pesa shop that is not branded.

It is important to note that it is the Agent who brands your shop, after you as the subdealer has met the requirements needed.

The cost of opening an M-Pesa shop varies with the location.

4. You Need Volumes

As we saw earlier, the much you can make in the M-Pesa business can be as low as KSh4 per transaction, this therefore means that your business must be able to attract many people in order to make you substantial money.

This also means that you should set up your shop in a busy area where more people can visit your shop and access M-Pesa services.


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And there you have it, those are some of the key things you need in order to set up your Mpesa shop.

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