If you have been thinking of starting a business in Kenya, an M-PESA shop has probably crossed your mind. M-PESA shops are quite profitable businesses and what makes them an attractive investment is that they are quite easy to start and you can operate both as a main or side hustle. Even if you already have an existing business, you can still incorporate an M-Pesa counter into the business.
Would you like to be
an agent of the biggest mobile service provider in Kenya? Read on.
Step 1: What You
Need to Get Started
To operate an M-PESA
shop as an agent, you need to have a registered limited company in business for
at least 6 months and have at least 3 outlets ready to offer MPESA services.
A minimum investment
for an MPESA outlet is Ksh. 100,000 float.
You’ll need to provide
Safaricom with business permits for each of the MPESA outlets, VAT & tax
certificates, ID’s, banking license from a reputable financial institution, and
police clearance certificates.
Fill in the MPesa
agent head office application form and the MPesa agent store application form.
Once you have
submitted your forms and met all the requirements you’ll be given a till number
that you will use.
Step 2: How to run
the Day to Day business
You can run the MPesa
outlet yourself or hire competent staff with at least KCSE qualification. You
also need to brand your MPESA outlet with the Safaricom brand guidelines. The
day to day operations include;
Depositing cash into
accounts of registered MPESA customers.
Process cash
withdrawal for registered MPESA customers.
Register new MPESA
users.
Comply with Safaricom
business practices.
Step 3: Choose your
preferred MPESA outlet
You can run your
M-PESA outlet in two ways;
Standard Outlet
This is the most
recommended outlet since you have to go through the complete process above and
be registered as an agent.
As a sub-dealer
Operating as a sub-dealer is much more affordable than registering as an agent. However, you will
need to work under a licensed agent by buying their MPESA line and paying them a commission for using their lines. For sub-dealers, you only need a float of
Ksh.20,000 – Ksh. 40,000.
Expected Challenges
- Running an MPESA shop doesn’t really make
you an entrepreneur because technically you are employed by Safaricom. You
have to share your profit with them and they determine the amount of
profit that you earn.
- It is also quite a flooded business. MPESA
shops are everywhere, on every street corner and this makes it very
competitive.
- There are also strict guidelines that you
should follow as an MPESA agent and failure to adhere can lead to your
line being blocked.
- Running an MPESA shop is also a security
risk since people know that you handle a lot of cash and that makes you a
target for thieves.