<h2>Lipa na M-Pesa Paybill - Business Bouquet Tariff Structure</h2>
<p>The Business Bouquet Tariff is a customer-funded payment model within M-Pesa Paybill service where customers bear the full cost of transaction charges while businesses pay nothing. This tariff structure is ideal for organizations looking to eliminate payment processing costs entirely, making it particularly attractive for utilities, essential services, and businesses operating on tight margins. This comprehensive guide explores the Business Bouquet Tariff structure, its strategic applications, and implementation process.</p>
<h3>Complete Business Bouquet Tariff Structure</h3>
<p>According to the official Safaricom Paybill Standard Tariff document, the Business Bouquet pricing is structured as follows:</p>
<table>
<thead>
<tr>
<th>Transaction Amount (KSh)</th>
<th>Customer Charge</th>
<th>Business Charge</th>
<th>Total Charge</th>
</tr>
</thead>
<tbody>
<tr>
<td>1 - 49</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr>
<td>50 - 100</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr>
<td>101 - 500</td>
<td>5</td>
<td>0</td>
<td>5</td>
</tr>
<tr>
<td>501 - 1,000</td>
<td>10</td>
<td>0</td>
<td>10</td>
</tr>
<tr>
<td>1,001 - 1,500</td>
<td>15</td>
<td>0</td>
<td>15</td>
</tr>
<tr>
<td>1,501 - 2,500</td>
<td>20</td>
<td>0</td>
<td>20</td>
</tr>
<tr>
<td>2,501 - 3,500</td>
<td>25</td>
<td>0</td>
<td>25</td>
</tr>
<tr>
<td>3,501 - 5,000</td>
<td>34</td>
<td>0</td>
<td>34</td>
</tr>
<tr>
<td>5,001 - 7,500</td>
<td>42</td>
<td>0</td>
<td>42</td>
</tr>
<tr>
<td>7,501 - 10,000</td>
<td>48</td>
<td>0</td>
<td>48</td>
</tr>
<tr>
<td>10,001 - 15,000</td>
<td>57</td>
<td>0</td>
<td>57</td>
</tr>
<tr>
<td>15,001 - 20,000</td>
<td>62</td>
<td>0</td>
<td>62</td>
</tr>
<tr>
<td>20,001 - 25,000</td>
<td>67</td>
<td>0</td>
<td>67</td>
</tr>
<tr>
<td>25,001 - 30,000</td>
<td>72</td>
<td>0</td>
<td>72</td>
</tr>
<tr>
<td>30,001 - 35,000</td>
<td>83</td>
<td>0</td>
<td>83</td>
</tr>
<tr>
<td>35,001 - 40,000</td>
<td>99</td>
<td>0</td>
<td>99</td>
</tr>
<tr>
<td>40,001 - 45,000</td>
<td>103</td>
<td>0</td>
<td>103</td>
</tr>
<tr>
<td>45,001 - 50,000</td>
<td>108</td>
<td>0</td>
<td>108</td>
</tr>
<tr>
<td>50,001 - 70,000</td>
<td>108</td>
<td>0</td>
<td>108</td>
</tr>
<tr>
<td>70,001 - 250,000</td>
<td>108</td>
<td>0</td>
<td>108</td>
</tr>
</tbody>
</table>
<p><strong>Note</strong>: Transactions from KSh 1 to KSh 100 are completely free for both the customer and the business.</p>
<p>&nbsp;</p>
<h2>Lipa na M-Pesa Paybill - Customer Bouquet Tariff Structure</h2>
<p>The Customer Bouquet Tariff is a business-friendly M-Pesa Paybill pricing structure where businesses absorb all transaction charges, enabling customers to make payments completely free of charge. This tariff model is designed to enhance customer satisfaction by removing payment barriers and ensuring customers pay exactly the invoiced amount without any deductions.</p>
<p><strong>Business Collection Fee Structure:</strong></p>
<table>
<thead>
<tr>
<th>Transaction Amount (KSh)</th>
<th>Customer Charge</th>
<th>Business Charge</th>
<th>Total Charge</th>
</tr>
</thead>
<tbody>
<tr>
<td>1 - 49</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr>
<td>50 - 100</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr>
<td>101 - 500</td>
<td>0</td>
<td>5</td>
<td>5</td>
</tr>
<tr>
<td>501 - 1,000</td>
<td>0</td>
<td>10</td>
<td>10</td>
</tr>
<tr>
<td>1,001 - 1,500</td>
<td>0</td>
<td>15</td>
<td>15</td>
</tr>
<tr>
<td>1,501 - 2,500</td>
<td>0</td>
<td>20</td>
<td>20</td>
</tr>
<tr>
<td>2,501 - 3,500</td>
<td>0</td>
<td>25</td>
<td>25</td>
</tr>
<tr>
<td>3,501 - 5,000</td>
<td>0</td>
<td>34</td>
<td>34</td>
</tr>
<tr>
<td>5,001 - 7,500</td>
<td>0</td>
<td>42</td>
<td>42</td>
</tr>
<tr>
<td>7,501 - 10,000</td>
<td>0</td>
<td>48</td>
<td>48</td>
</tr>
<tr>
<td>10,001 - 15,000</td>
<td>0</td>
<td>57</td>
<td>57</td>
</tr>
<tr>
<td>15,001 - 20,000</td>
<td>0</td>
<td>62</td>
<td>62</td>
</tr>
<tr>
<td>20,001 - 25,000</td>
<td>0</td>
<td>67</td>
<td>67</td>
</tr>
<tr>
<td>25,001 - 30,000</td>
<td>0</td>
<td>72</td>
<td>72</td>
</tr>
<tr>
<td>30,001 - 35,000</td>
<td>0</td>
<td>83</td>
<td>83</td>
</tr>
<tr>
<td>35,001 - 40,000</td>
<td>0</td>
<td>99</td>
<td>99</td>
</tr>
<tr>
<td>40,001 - 45,000</td>
<td>0</td>
<td>103</td>
<td>103</td>
</tr>
<tr>
<td>45,001 - 50,000</td>
<td>0</td>
<td>108</td>
<td>108</td>
</tr>
<tr>
<td>50,001 - 70,000</td>
<td>0</td>
<td>108</td>
<td>108</td>
</tr>
<tr>
<td>70,001 - 250,000</td>
<td>0</td>
<td>108</td>
<td>108</td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>
<h2>Lipa na M-Pesa Paybill - Mgao Tariff Structure</h2>
<p>The Mgao Tariff is a hybrid pricing structure designed for organizations that want to share the burden of transaction costs with their customers rather than absorbing all charges or passing them entirely to customers. This balanced approach creates a fair transaction ecosystem where both parties contribute to the service costs.</p>
<h3>Key Features of Mgao Tariff</h3>
<ul>
<li><strong>Shared Cost Model</strong>: Transaction charges are split between customer and business</li>
<li><strong>Lower Business Costs</strong>: Compared to Business Bouquet, organizations pay less per transaction</li>
<li><strong>Reasonable Customer Fees</strong>: Customers pay lower charges than they would with Customer Bouquet</li>
<li><strong>Transparent Pricing</strong>: Both parties know exactly what they're paying</li>
<li><strong>Scalable Solution</strong>: Suitable for medium to large transaction volumes</li>
</ul>
<h2>Complete Mgao Tariff Structure</h2>
<p>According to the official Safaricom Paybill Standard Tariff document, the Mgao pricing structure is as follows:</p>
<table>
<thead>
<tr>
<th>Transaction Range</th>
<th>Customer Charge</th>
<th>Business Charge</th>
<th>Total Charge</th>
<th>Cost Split</th>
</tr>
</thead>
<tbody>
<tr>
<td>1 - 49</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>N/A</td>
</tr>
<tr>
<td>50 - 100</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>N/A</td>
</tr>
<tr>
<td>101 - 500</td>
<td>5</td>
<td>0</td>
<td>5</td>
<td>100% Customer</td>
</tr>
<tr>
<td>501 - 1,000</td>
<td>10</td>
<td>0</td>
<td>10</td>
<td>100% Customer</td>
</tr>
<tr>
<td>1,001 - 1,500</td>
<td>10</td>
<td>5</td>
<td>15</td>
<td>67% Customer / 33% Business</td>
</tr>
<tr>
<td>1,501 - 2,500</td>
<td>13</td>
<td>7</td>
<td>20</td>
<td>65% Customer / 35% Business</td>
</tr>
<tr>
<td>2,501 - 3,500</td>
<td>16</td>
<td>9</td>
<td>25</td>
<td>64% Customer / 36% Business</td>
</tr>
<tr>
<td>3,501 - 5,000</td>
<td>16</td>
<td>18</td>
<td>34</td>
<td>47% Customer / 53% Business</td>
</tr>
<tr>
<td>5,001 - 7,500</td>
<td>17</td>
<td>25</td>
<td>42</td>
<td>40% Customer / 60% Business</td>
</tr>
<tr>
<td>7,501 - 10,000</td>
<td>18</td>
<td>30</td>
<td>48</td>
<td>38% Customer / 62% Business</td>
</tr>
<tr>
<td>10,001 - 15,000</td>
<td>18</td>
<td>39</td>
<td>57</td>
<td>32% Customer / 68% Business</td>
</tr>
<tr>
<td>15,001 - 20,000</td>
<td>19</td>
<td>43</td>
<td>62</td>
<td>31% Customer / 69% Business</td>
</tr>
<tr>
<td>20,001 - 25,000</td>
<td>20</td>
<td>47</td>
<td>67</td>
<td>30% Customer / 70% Business</td>
</tr>
<tr>
<td>25,001 - 30,000</td>
<td>20</td>
<td>52</td>
<td>72</td>
<td>28% Customer / 72% Business</td>
</tr>
<tr>
<td>30,001 - 35,000</td>
<td>21</td>
<td>62</td>
<td>83</td>
<td>25% Customer / 75% Business</td>
</tr>
<tr>
<td>35,001 - 40,000</td>
<td>23</td>
<td>76</td>
<td>99</td>
<td>23% Customer / 77% Business</td>
</tr>
<tr>
<td>40,001 - 45,000</td>
<td>23</td>
<td>80</td>
<td>103</td>
<td>22% Customer / 78% Business</td>
</tr>
<tr>
<td>45,001 - 50,000</td>
<td>24</td>
<td>84</td>
<td>108</td>
<td>22% Customer / 78% Business</td>
</tr>
<tr>
<td>50,001 - 70,000</td>
<td>24</td>
<td>84</td>
<td>108</td>
<td>22% Customer / 78% Business</td>
</tr>
<tr>
<td>70,001 - 250,000</td>
<td>24</td>
<td>84</td>
<td>108</td>
<td>22% Customer / 78% Business</td>
</tr>
</tbody>
</table>
<p><strong>Important Notes:</strong></p>
<ul>
<li>Transactions from KSh 1 to KSh 100 are completely free for both parties</li>
<li>For transactions KSh 101 - KSh 1,000, customers bear 100% of minimal charges</li>
<li>As transaction values increase, businesses progressively bear a larger percentage of costs</li>
<li>Maximum customer charge is capped at KSh 24 for transactions above KSh 45,000</li>
</ul>

Understanding Paybill charges is important for businesses as these fees can significantly impact profitability, customer adoption, and competitive positioning.

Lipa na Mpesa Paybill Charges and Limits (2026)

Related Content