Why Aggregated Mpesa Lines are the best for starting your M-pesa business in Kenya?

Why Aggregated Mpesa Lines are the best for starting your M-pesa business in Kenya?

Aggregated Mpesa lineis no doubt the leading mobile money transfer in Kenya. The broad range of services being offered by the system is vast and quickly growing with new offerings every other day being launched. Think of sending money, pay bill, Lipa Kodi na Mpesa, Nunua na Mpesa, transfer/withdraw money from banks just to mention a few .Come to look at all these transactions,they are all enabled at the lowest level by Mpesa agents who enable you to deposit or withdraw money into your personal account for use on these value added services. With increasing Mpesa usage this translates to more and more people joining the service and existing ones expanding their use of the service.This also in turns points that the role of an Mpesa agent shall always be key in this entire chain. Being an mpesa agent puts you in a unique position to capture this ever growing customer base. Win Ksh 5Million on Stawisha Na Mshwari promotion Here

In our initial blog post(How an Mpesa Agency Operates) we highlighted ways of becoming an agent but truth be told having to register a company and all the bureaucracies, costs involved; it will take a couple of months to set up which is unreasonable for small starters, so only one option is left, having to get an Mpesa line from an already registered company at a small commission per month. It is more of someone leasing an Mpesa line to you and you will be sharing the spoils every month when you get paid by Safaricom. This option is easier and much better and you get set up in less than a month.
In the early years of Mpesa this was done informally by one just agreeing to set terms by your principal agent. Problem is, with it came  lots of conflicts e.g. unwarranted blocking of your line by your principal, delays in remittances of your commission and lower commission percentages for the your business.
Aggregated lines were Safaricoms solution to fraudulent super agents who claimed extra commissions percentages other than the Safaricom’s recommended. Another issue was the delay in remittances of commissions by super agents.

Advantages of aggregated Mpesa Lines?

  • Higher Commissions-with aggregated mpesa lines you will get the recommended Safaricom split commissions percentage i.e. 80% for you and 20% for your principal. This is by far the best rate because non aggregated lines attract up to 40% and in some occasions you don’t even get to know what you earned fo the whole month meaning unscrupulous super dealers can take even more without your knowledge if you don’t follow up for summarized till/agent line performance report.
  • Direct payment of commission by Safaricom-You don’t have to wait on on your principal to reimburse commissions, you get it directly from Safaricom into your working account by 1st of a new month.
  • No delays in remittance of commissions– All your commissions for your till accrued in the past month are summed up by 0059hours before beginning f new month and yes ,you have your commission by 1st of a new month unlike non aggregated lines where principals can take time to send you your commissions.
  • Faster  conflict resolutions- in some occasions their might be some issues with your principal or vice versa e.g. some uncouth principals might feel their leased lines aren’t performing well(getting less commissions than anticipated) and might want to reclaim them without your approval,. Such scenarios are easily resolved if you are using aggregated line unlike non aggregated when the arrangement is informal.
  • Float Management-Aggregated lines come with a float management feature which enables you to easily manage your line/till e.g. by giving you an option to get cash from super agents(banks, certified super agents Mpesa outlets) by exchanging excess e-float with cash and vice versa. This is extremely economical for any mpesa agent because it gives you a very cheap way to balance and manage money in your till.

Who should get an aggregated Safaricom line?

  • Existing Mpesa agents who already own non aggregated lines-Changing to aggregated line will not only guarantee higher commissions for your till but also timely payment of commissions normally by 1st or 2nd of a new month. Inquire your principal
  • New Mpesa agents-if you are willing to invest in an mpesa agent business. For new starters do not get a lesser deal by getting a non aggregated line.

Check What you can get with your Safaricom Bonga Points in 2016 Here

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  • Thanks Patrick.

  • Thanks Patrick!kindly let us know if you need any more information!

  • patrick

    very useful information for starters. thanks.

  • Miriam Andia Njeche

    I have been operating E-Mpesa for the last 5 years which was not aggregated. Recently i got one which is aggregated. My principal frozen the line claiming that am not working because the transaction are not seen in his system, yet i have been serving an average of fifty people per day from 2 august. Am stuck . what could be the problem and please help me get principal who can communicate well to work with.

  • How do i know whether my line is aggregated

  • How do i know i have aggregated line?

  • Hey how do i know i have an aggregated line?

  • Hi Allan,thanks for your inquiry.For you to set up an Mpesa with an aggregated lines , you will need a good location since Mpesa revenues is commission based.The better the location the higher the commissions.You will also need a principal agent who will give you an aggregated line from which you will share revenues on the 80:20 rule where you get 80% commissions at the end of the month and 20% for the principal.How much you invest in the business will vary.If you already have an existing shop e.g. a supermarket,retail it will be much easier to set up and boost your revenue streams.All you need is the Mpesa till SIM card and float(cash for operating your Mpesa agency).This will vary depending on your location,volume of transactions but having sufficient float will be very important to ensure that you don’t turn away clients due to lack of efloat and cash for transactions.

  • Allan Masaba

    What do i need to set up my m-pesa business using aggregated lines? how much do i need to invest?

  • joseph mukono

    To set up an mpesa business iam in githurai 45 nairobi

  • Frank Tanui

    How much for the. aggregated line, am interested. I almost bought one from someone before i read your blog.Any assistance to get the type u mentioned will be highly appreciated.