Mobile
and bank deposits and withdrawals have become part of day to day life of almost
every Kenyan.
People
always depositing money into their M-PESA, Airtel Money, Telkom Kash, Equity
bank, Co-operative bank, and KCB accounts, among other mobile wallets.
In
equal measure, others are always withdrawing money they just received into
those accounts.
Does
that in any way sound as if mobile and bank money deposits and withdrawals are
vanishing anytime soon?
Definitely
not!
·
Register on the platform
·
Complete the interactive tutorial
·
Choose one of the strategies
·
Practice using a demo account
·
Make a deposit and become an expert
The
interesting bit of it all is that those money deposits and withdrawals are done
via Mobile Money and Banking agencies who carry out such transactions every
day.
An agent
comes in the gap to provide the medium for depositing and withdrawing money and
in return, they earn commissions for both services.
Now
that you know that an agent will earn commissions to mediate deposits and
withdrawals concerning Mobile and Bank Money. Can’t you be that agent and tap
in on those awesome commissions on the Mobile Money and Banking Agency
business?
Interestingly,
the banking agency business is one of the most profitable businesses in Kenya
in 2020.
What to consider when starting a Mobile Money and Banking Agency
in Kenya
Location.
·
Register on the platform
·
Complete the interactive tutorial
·
Choose one of the strategies
·
Practice using a demo account
·
Make a deposit and become an expert
You can
locate your Mobile Money and Bank Agent business along a busy street or a
strategic corner where people are always passing by and can clearly see from
afar.
That
way, you will attract passersby and people from far away all alike.
a. M-PESA and Banking Agent Requirements.
M-PESA
is the most profitable and robust Mobile money network.
Realize
that there are two types of M-PESA outlets. Decide which of the two to start by
considering their requirements below.
·
Standard outlet.
·
Sub-dealer outlet.
Standard outlet:-
First,
to get started,
1.
Have a registered limited company in business for at least 6
months.
2.
At least 3 outlets ready to offer M-PESA services.
3.
Have a minimum investment of Ksh.100,000 for float purchase.
4.
Provide Safaricom with business permits for each M-PESA outlet.
5.
Send Safaricom your VAT and Tax certificates.
6.
Provide Safaricom with a Banking license from a reputable
financial institution
7.
Fill the M-PESA Agent head office application form.
8.
Fill the M-PESA Agent store application form.
·
Register on the platform
·
Complete the interactive tutorial
·
Choose one of the strategies
·
Practice using a demo account
·
Make a deposit and become an expert
Second,
after you have submitted your forms, met all requirements and been given an
Agent number;
1.
Brand your M-PESA outlet following the Safaricom branding
protocol.
2.
Decide whether to run the outlet yourself or employ a reliable
and competent person.
Third,
your roles will be to;
1.
Process withdrawals for registered M-PESA users.
2.
Deposit money into accounts of registered M-PESA users.
3.
Register new M-PESA users.
4.
Be in compliance with Safaricom’s business practices.
Sub-dealer outlet:-
2.
Work under a licensed M-PESA agent by;
1.
Buying their M-PESA line.
2.
Paying them a commission for using their lines.
3.
Have a minimum investment of Ksh.20,000 – Ksh.40,000.
4.
Perform roles similar to those of the standard outlet you work
under.
b. Equity Bank Agent Requirements.
First, to become an Equity Agent, you need the following:
1.
An existing business that has been operating successfully in the
same location for a minimum of 12 months.
2.
Valid business permits for the business.
3.
A strategic business location that is accessible, visible and
secure.
4.
A good reputation and high moral standing.
5.
An excellent reach and catchment area.
6.
Brief description of commercial activity for the last 12 months.
7.
Current bank statements for the last 6 months.
Second, after you have met that threshold:
1.
Fill and submit the Agency Banking application form to
Equity bank.
2.
Submit your filled and signed application form together with the
following documents:
Requirements for Equity Bank Agency
·
National ID and copies for principal applicant(s) to Equity
bank.
·
A certificate of good conduct to Equity bank.
·
A brief description of commercial activity for the past 12
months (business profile).
·
Bank and/or Loan statements from any other institution for the
past 12 months.
·
Three (3) copies of the pre-signed Equity Agent Contract to
accompany the application.
·
Copy of certificate of incorporation or certificate of
registration of the business name as applicable.
·
Articles and memorandum of association/Partnership deed where
applicable.
·
Board resolution (applicable to companies and partnerships).
·
Valid business license or permit for any lawful commercial
activity carried on by the entity.
·
Audited financial records for the past 12 months.
·
Sketch map for business and home location.
·
Credit Reference Bureau report (CRB).
·
Two passport size photos for every applicant.
·
Curriculum vitae (CV) of all the applicants.
Third, attach three colored photos of the business outlet
showing:
·
Interior view of premises from the door.
·
Interior view showing stocks.
·
Outside view – 15 meters from the door showing nearby premises.
c. KCB Bank Agent Requirements.
This is
what is required to become an agent: –
1.
Have a bank account with KCB.
2.
Two colored passport size photos.
3.
Pin certificate.
4.
Identification document.
5.
A valid certificate of good conduct.
6.
Business license.
7.
The existing business must have operated for a minimum of 12
months.
8.
Fill application forms from the nearest KCB branch.
d. Co-Operative Bank Agent Requirements.
You
don’t have to be a Co-op Bank account holder to apply to be an agent.
Customers, non-customers, SACCO-link members, co-operatives, MCU
customers, SME customers, and corporates can all be Co-Op Bank Agents.
To
become an agent;
1.
Visit your nearest Co-op Bank branch.
2.
Fill in an application form.
3.
Submit the following documents along with the application form
for individuals:
1.
Certificate of good conduct.
2.
PIN certificate.
3.
Bank statements if you are not a Co-op Bank account holder.
4.
Business permits for the last 12 months.
5.
Current business permit.
6.
Certificate of registration.
7.
Copy of ID or equivalent.
8.
Two passport size photographs.
9.
Business owners’ or directors’ CVs.
10.
CBK Form 3 & CBK Form 4 witnessed by Commissioner of Oaths.
4.
For corporates and SACCOs, the following
additional documents will be required:
0.
Audited books of accounts for the last two years.
1.
Resolution to carry out agency banking.
2.
SASRA approval for FOSA’s.
3.
VAT registration (where applicable).
5.
Pay the applicable fees to facilitate
approval:
0.
CBK application fee of Ksh.1,000.
1.
Float placement – Determined by customer limit which is arrived
at during appraisal.
Capital required for a Mobile Money and Banking Agency business.
The
capital depends on what really you want to locate your business.
As
mentioned earlier, being an M-PESA agent may require a minimum of Ksh.100,000.
If you want to add Bank Agency in the equation, you may need more. Let us
generally say that you may need Ksh.100,000 – Ksh.500,000 to be a
well-established Mobile Money and Bank Agent.
How profitable is a Mobile Money and Banking Agency?
M-PESA Agent Commissions.
M-PESA
Deposit commissions.
|
Amount |
Commission in Ksh |
|
50-100 |
4 |
|
101-510 |
8 |
|
511-1,010 |
9 |
|
1,011-1,510 |
10 |
|
1,511-2,510 |
11 |
|
2,511-3,510 |
12 |
|
3,511-5,010 |
14 |
|
5,011-7,510 |
20 |
|
7,511-10,010 |
28 |
|
10,011-15,010 |
40 |
|
15,011-20,020 |
55 |
|
20,021-25,020 |
71 |
|
25,021-30,020 |
87 |
|
30,021-35,020 |
103 |
|
35,021-40,020 |
119 |
|
40,021-45,020 |
135 |
|
45,021-50,020 |
150 |
|
50,021-60,020 |
190 |
|
60,021-70,000 |
190 |
M-PESA Withdrawal Commissions.
|
Applicable Commission in Ksh. |
||
|
Amount (Ksh) |
Registered
Unregistered |
|
|
10-49 |
N/A |
N/A |
|
50-100 |
Ksh.5 |
N/A |
|
101-500 |
Ksh.8 |
Ksh.8 |
|
501-1000 |
Ksh.10 |
Ksh.10 |
|
1,001-1500 |
Ksh.12 |
Ksh.12 |
|
1,501-2500 |
Ksh.15 |
Ksh.15 |
|
2,501-3500 |
Ksh.20 |
Ksh.20 |
|
3,501-5000 |
Ksh.25 |
Ksh.25 |
|
5,001-7500 |
Ksh.30 |
Ksh.30 |
|
7,501-10000 |
Ksh.35 |
Ksh.35 |
|
10,001-15000 |
Ksh.45 |
Ksh.45 |
|
15,001-20000 |
Ksh.60 |
Ksh.60 |
|
20,001-25000 |
Ksh.65 |
Ksh.65 |
|
25,001-30000 |
Ksh.70 |
Ksh.70 |
|
30,001-35000 |
Ksh.70 |
Ksh.70 |
|
35,001-40000 |
Ksh.100 |
N/A |
|
40,001-45000 |
Ksh.150 |
N/A |
|
45,001-50000 |
Ksh.180 |
N/A |
|
50,001-70000 |
Ksh.200 |
N/A |
Equity Bank Agent Commissions.
Equity
Bank Withdrawal Commissions.
·
100 -2500 – Ksh.15
·
2,501 -5,000 – Ksh.25
·
5,001 -10,000 – Ksh.35
·
10,001 -20,000 – Ksh.60
·
20,001 -35,000 – Ksh.70
·
35,001 -50,000 – Ksh.90
·
50,001 and above- Ksh.120
Equity Bank Deposits Commissions.
·
100 -5,000 – Ksh.10
·
5,001 -10,000 – Ksh.15
·
10,001 -20,000 – Ksh.20
·
20,001 and above – Ksh.30
Other
services and their commissions.
·
Account Opening – Ksh.100
·
Eazzy 24/7 – Ksh.30
·
Account Reactivation – Ksh.50
·
Beba – Ksh.50
·
E hapo hapo – Ksh.50
KCB Bank Agent Commissions.
KCB
Bank Deposit Commissions.
·
100 – 10,000 – Ksh.10
·
10,001 – 20,000 – Ksh.15
·
20,001 – 50,000 – Ksh.20
·
50,001 – 75,000 – Ksh.25
·
75,001 – 100,000 – Ksh.30
KCB Bank Withdraw Commissions.
·
100 – 2,000 – Ksh.10
·
2,001 -5,000 – Ksh.15
·
2,501 -5,000 – Ksh.16
·
5,001 -10,000 – Ksh.26.50
·
10,001 -20,000 – Ksh.37.50
·
20,001 -35,000 – Ksh.52.50
·
35,001 -50,000 – Ksh.52.50
·
50,001 -75,000 – Ksh.92.50
·
75,001 -100,000 – Ksh.92.50
Co-Operative Bank Agent Commissions.
Co-Op
Bank Withdrawal Commissions.
·
50 -2,000 – Ksh.20
·
2,001 -5,000 – Ksh.20
·
5,001 -10,000 – Ksh.30
·
10,001 -20,000 – Ksh.35
·
20,001-30,000 – Ksh.45
·
30,001-40,000 – Ksh.55
·
40,001-50,000 – Ksh.65
·
50,001-100,000 – Ksh.120
Co-Op Bank Deposit Commissions.
·
100-14,999 – Ksh.10
·
15,000-19,999 – Ksh.15
·
20,000-29,999 – Ksh.20
·
30,000 and Above – Ksh.30
Other Services and their commissions.
·
Utility (Water and KPLC) – Ksh.25
·
Balance Enquiry – Ksh.5
·
Mini Statement – Ksh.10
That’s
how profitable Mobile Money and Bank Agent Business can be.
If you merge being an M-PESA Agent with being a Bank Agent of one or several banks, you are indeed in a lucrative business. Mobile money and Bank Agent, therefore, becomes indeed, one of the most profitable businesses in Kenya today.