2026 Merchant Fee Calculator: Card & M-Pesa Buy Goods VAT Impact

Finance Bill 2026 rewrites tax rules on card payments. Calculate the 16% VAT impact on Pesapal and M-Pesa merchant fees for your small business in Kenya.

How it works

This tool uses real-time data from official sources (CBK, KRA, Safaricom) updated as of 5/1/2026. Calculations are based on the latest 2026 finance regulations.

Lipa Na M-Pesa Buy Goods Merchant Fees & Regulations

Lipa Na M-Pesa Buy Goods Till numbers are a staple payment method for retail shops and businesses across Kenya. While customers buy goods free of charge, the receiving merchant incurs a standard processing fee.

Merchant Cost Regulations:

  • The Fee Rate: Merchants pay a flat commission of 0.5% of the transaction value.
  • Maximum Cap: The merchant fee is strictly capped at a maximum of KES 200 per transaction, meaning massive invoice payments remain highly cost-efficient.
  • Settlement: Funds collected on Buy Goods accounts are settled immediately to the merchant's business account or transferred to bank accounts cleanly.