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.
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