M-PESA Paybill Charges 2026: Business Bouquet, Mgao & Customer Bouquet
Quick Answer: Paybill has no single universal customer charge. What you pay depends entirely on whether the business uses Business Bouquet, Mgao, or Customer Bouquet. Some Paybills cost the customer nothing, some charge the customer everything, and some split the cost.
Of all the M-PESA services available in Kenya, Paybill is the one that confuses people the most and for good reason. Unlike send money or agent withdrawals, where every user pays a predictable, published fee, Paybill has no single universal charge. Two businesses with Paybill numbers sitting side by side may charge you completely differently for the same transaction amount.
Paybill charges vary by tariff, making it important for both businesses and customers to understand these costs. This guide breaks down every Paybill charge in 2026 across all three tariffs, explains how to find out what tariff a business uses, covers the registration process for businesses, and gives you a Paybill-only calculator structure to estimate the fee before paying.
Paybill Charges Calculator
Choose the Paybill tariff, enter the amount, and check what the customer pays, what the business pays, and the total fee band.
What Is M-PESA Paybill?
Paybill is a cash collection service that allows an organization to collect money on a regular basis from its customers through M-PESA. Payments are customer-initiated, and the receiving organization may use an account number or reference to identify the payer. When you pay school fees, electricity, water, insurance, SACCO contributions, hospital bills, rent, or loan repayments via M-PESA, you are usually using Paybill.
To make a Paybill payment, you go to Lipa na M-PESA -> Pay Bill through *334#, STK, or the M-PESA app, then enter the business Paybill number, your account reference, the amount, and confirm with your PIN. The money leaves your wallet and goes to the business account instantly, and both you and the business receive confirmation.
Paybill is different from a Till number. Paybill is mainly for bill payments, recurring obligations, structured collections, and account-referenced payments. Till is for point-of-sale purchases and is always free for the customer. Paybill may be free or may not be, depending entirely on the tariff chosen by the receiving business.
The Three Paybill Tariffs - How the System Works
When applying for a Paybill number, businesses choose between three tariff models: Mgao, Business Bouquet, or Customer Bouquet. That choice determines who bears the M-PESA transaction cost across the life of that Paybill number.
Under Business Bouquet, the customer pays the full fee and the business pays nothing. Under Mgao, the customer and the business share the cost, but the split changes by amount band. Under Customer Bouquet, the business absorbs the full cost and the customer pays nothing.
There is no public way to identify the tariff from the Paybill number alone. The reliable clue is the confirmation screen shown before you enter your PIN, or direct confirmation from the business itself. All figures shown here are inclusive of excise duty.
Business Bouquet (Customer Pays Everything)
Business Bouquet is the most widely used Paybill model in Kenya. Under this tariff, the customer bears the entire transaction charge and the business pays nothing. This is why utilities, schools, hospitals, government entities, and many banks often feel like they "charge for Paybill" even though the actual fee is coming from the tariff setting behind the Paybill number.
The Business Bouquet fee is capped at KES 108 for amounts from KES 20,001 up to KES 250,000. Small payments from KES 1-100 remain free to the customer.
| Payment Band (KES) | Customer Pays (KES) | Business Pays (KES) |
|---|---|---|
| 1 - 100 | 0 (Free) | 0 |
| 101 - 500 | 7 | 0 |
| 501 - 1,000 | 13 | 0 |
| 1,001 - 1,500 | 23 | 0 |
| 1,501 - 2,500 | 33 | 0 |
| 2,501 - 3,500 | 53 | 0 |
| 3,501 - 5,000 | 57 | 0 |
| 5,001 - 7,500 | 78 | 0 |
| 7,501 - 10,000 | 90 | 0 |
| 10,001 - 15,000 | 100 | 0 |
| 15,001 - 20,000 | 105 | 0 |
| 20,001 - 35,000 | 108 | 0 |
| 35,001 - 50,000 | 108 | 0 |
| 50,001 - 250,000 | 108 | 0 |
Mgao (Customer and Business Share the Fee)
Mgao means share, and that is exactly what happens under this tariff. The customer and the business share the total fee, but not always on a flat 50/50 basis. The split varies by band, and at higher values the combined fee can stay capped while the customer portion remains relatively modest.
That is the most important nuance in Mgao: it is not a simple fixed split across every band. The published tariff assigns a customer charge, a business charge, and a total combined fee for each range, so the confirmation screen is always the best final check before payment.
| Payment Band (KES) | Customer Pays (KES) | Business Pays (KES) | Total Fee (KES) |
|---|---|---|---|
| 1 - 100 | 0 | 0 | 0 |
| 101 - 500 | 4 | 4 | 7 |
| 501 - 1,000 | 7 | 7 | 13 |
| 1,001 - 1,500 | 12 | 12 | 23 |
| 1,501 - 2,500 | 17 | 17 | 33 |
| 2,501 - 3,500 | 27 | 27 | 53 |
| 3,501 - 5,000 | 29 | 29 | 57 |
| 5,001 - 7,500 | 39 | 39 | 78 |
| 7,501 - 10,000 | 45 | 45 | 90 |
| 10,001 - 15,000 | 50 | 50 | 100 |
| 15,001 - 20,000 | 53 | 53 | 105 |
| 20,001 - 35,000 | 54 | 54 | 108 |
| 35,001 - 50,000 | 54 | 54 | 108 |
| 50,001 - 250,000 | 54 | 54 | 108 |
Customer Bouquet (Business Pays Everything, Customer Pays Nothing)
Under Customer Bouquet, the customer pays KES 0 across the entire published Paybill range and the business absorbs the full charge. This is the most customer-friendly Paybill model and is commonly used by larger businesses or institutions that want the customer to pay exactly the invoiced amount with no additional M-PESA charge.
If you ever make a Paybill payment and discover that your confirmation screen shows no customer fee at all, the business is usually using Customer Bouquet. It is also the closest Paybill gets to the customer-free experience of a Till number.
| Payment Range | Customer Pays | Business Pays |
|---|---|---|
| 1 - 100 | 0 (Free) | 0 |
| 101 - 500 | 0 (Free) | 7 |
| 501 - 1,000 | 0 (Free) | 13 |
| 1,001 - 1,500 | 0 (Free) | 23 |
| 1,501 - 2,500 | 0 (Free) | 33 |
| 2,501 - 3,500 | 0 (Free) | 53 |
| 3,501 - 5,000 | 0 (Free) | 57 |
| 5,001 - 7,500 | 0 (Free) | 78 |
| 7,501 - 10,000 | 0 (Free) | 90 |
| 10,001 - 15,000 | 0 (Free) | 100 |
| 15,001 - 20,000 | 0 (Free) | 105 |
| 20,001 - 35,000 | 0 (Free) | 108 |
| 35,001 - 50,000 | 0 (Free) | 108 |
| 50,001 - 250,000 | 0 (Free) | 108 |
Paybill vs Buy Goods (Till) - Which Is Cheaper for the Customer?
All M-PESA payments to a Till number are free for the customer. The merchant pays the processing charge, not the customer. That means if a business offers both a Paybill and a Till number for the same obligation, Till is usually the cheaper customer option.
The practical rule is simple: if the business offers both options, ask whether you can use the Till. The only time that choice makes no difference to you is when the business is on Customer Bouquet, because that Paybill is already free on the customer side.
How to Find Out Which Paybill Tariff a Business Uses
There is no public Safaricom database showing the tariff behind every Paybill number, and you cannot decode it from the number itself. The most reliable options are:
- Make a small test payment if the business allows it.
- Call the business and ask directly which Paybill tariff it uses.
- Check the business website, invoice, or billing notice.
- Read the confirmation screen carefully before entering your PIN.
For large one-off payments, simply asking before you pay can save up to KES 108 on a single transaction.
How to Register for an M-PESA Paybill Number
Paybill applications are made through the online business onboarding environment at m-pesaforbusiness.co.ke. Businesses do not usually need to visit a Safaricom shop for standard online onboarding, provided they have the required documents ready and submit the correct category details.
Types of Paybill Available
Safaricom offers multiple Paybill categories to suit different organizational needs:
- Standard Paybill: for long-term business, school, hospital, utility, SACCO, and institution collections.
- Short-Term Paybill: for projects or temporary collection periods, normally limited in lifespan.
- Fundraising Paybill: for medical appeals, funerals, weddings, education drives, and other temporary fundraising needs.
Documents Required
The exact document set depends on the business type, but the core requirement set usually includes the application form, business registration documents, valid IDs for owners or directors, bank account proof, KRA PIN, and a Safaricom line for notifications and account management.
Limited companies typically need additional governance documents such as recent CR12 records and beneficial ownership information. NGOs and regulated businesses may also need regulator or oversight letters and sector licences.
How to Apply - Step by Step
- Visit m-pesaforbusiness.co.ke and start the Paybill application.
- Select the right business category and the right Paybill type.
- Choose the tariff: Mgao, Business Bouquet, or Customer Bouquet.
- Fill in the business and nominated-line details accurately.
- Upload the required documents.
- Submit the application and track it through the onboarding portal.
After submission of all required documents, Safaricom indicates that processing can be completed within 24 hours. Once approved, the Paybill number is sent to the nominated line together with activation guidance.
Official Contacts for Paybill Support
| Channel | Details |
|---|---|
| Paybill customer self-service (USSD) | 2344# from nominated line |
| M-PESA Business Portal | pay.m-pesaforbusiness.co.ke |
| Paybill application portal | m-pesaforbusiness.co.ke |
| Business support line | 0722 002 222 or 2222 |
| Business support email | m-pesabusiness@safaricom.co.ke |
| Safaricom customer care | Dial 100 from a Safaricom line |
| Transaction dispute | Forward M-PESA confirmation SMS to 456 or call 100 |
Frequently Asked Questions
Which Paybill is free?
A Paybill is free to the customer when the business uses Customer Bouquet. Under that tariff, the customer pays KES 0 and the business absorbs the full Paybill transaction charge.
What is the M-Pesa transaction for 2026?
M-PESA charges in 2026 depend on the specific service and amount band. For Paybill, there is no single universal customer charge because the fee depends on whether the business is on Business Bouquet, Mgao, or Customer Bouquet.
How much does it cost to send 1000 shillings through M-Pesa?
If you are sending KES 1,000 as ordinary Send Money to a registered user, the current fee is KES 13. If you are paying KES 1,000 through Paybill, the fee depends entirely on the Paybill tariff selected by the receiving business.
How much does it cost to send 5000 Kenyan shillings?
For ordinary Send Money, KES 5,000 currently costs KES 57. For Paybill, the customer charge can be different or even zero depending on the tariff behind the Paybill number.
Can I use M-Pesa in the USA?
A Kenyan M-PESA account is built around Kenyan registration and Kenyan domestic service flows. Broader international features exist through products such as M-PESA Global, but ordinary Paybill usage belongs to the Kenyan M-PESA environment.
What is the maximum balance in M-Pesa?
The standard consumer wallet balance limit is KES 500,000. If an incoming transaction would push your wallet above that ceiling, the payment can fail.
Can M-Pesa hold 600k?
No. A standard consumer M-PESA wallet cannot hold KES 600,000 because the ordinary wallet ceiling is KES 500,000.
When to reverse M-Pesa money?
If you notice a mistaken Paybill or M-PESA transaction, act immediately. Use the official Safaricom support route shown in the live transaction flow or contact customer care without delay while the transaction is still fresh.
Can foreigners use M-Pesa in Kenya?
M-PESA registration depends on the identification documents accepted by Safaricom at the time of registration. Foreigners can use M-PESA in Kenya if they meet the registration requirements and register successfully.
Who is the owner of M-Pesa?
In Kenya, M-PESA is operated by Safaricom PLC.
All charges in this guide are based on Safaricom's official published Paybill tariff structure and are current as of March 2026. Safaricom may update tariffs after the required notice process, and the confirmation screen shown before you enter your PIN remains the final charge for your live transaction.