Finance Tips

How to reduce your mpesa expenses

Mpesa is the main form of money transfer in Kenya. With over 10 million subscribers, it is the most popular in the country. Way above airtel money, nation hela, orange money and yucash.

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Mpesa is now popular in other countries and its being incorporated in almost all digital money transfers for instance western union and paypal.

We not only use mpesa to transfer money we also use it to pay bills: electric, water bills, hospital bills. Mpesa is roughly everywhere, just make a corner in our precious city and the name mpesa will automatically meet your eyes. Even in our villages mpesa has become a household name; we no longer go to shops to buy credit we actually no longer visit our families we rather mpesa them.

I love mpesa but one thing am not impressed with is the cost am undergoing in order to enjoy these services, I recently sent KShs 6000 to my mum; little did I know that I had to deposit 100 shillings extra in order to cover my sending and her withdrawal charges.

Since we surely can’t evade mpesa, does it mean we must endure all these costs? Must this monopoly take in every single coin we have? No, there is a way; it is the MKESHO way.

MKESHO is a special equity bank/ mpesa account

FEATURES OF AN MKESHO ACCOUNT

MESHO is incorporated in mpesa menu just like mshwari
Deposit from mpesa to mkesho is free (this is what we will take advantage of)
You get an ATM at a one-time charge of 500shillings
MKESHO can be your salary account
To withdraw from bank to mpesa is at a cost 30shillings (not very desirable)

BENEFITS OF MKESHO

Use of ATM for either deposit or withdrawal
Saving at the counter
Free deposit via mpesa
Withdraw via the counter at normal charges

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Therefore, whenever I receive 3,000 to 40,000 via mpesa and want to withdraw, all I do is deposit the money to mkesho for free; then withdraw at the ATM at a cost of 30bob. When I have over 40, 000 I can withdraw twice with the ATM at a cost of 60 bob; still way less than mpesa or again via the counter at a cost of 50 shillings. This amount turns is 100 when the withdrawal is done in other Equity bank branch.

M-PESA vs M-KESHO

M-PESA charges will depend on the amount you are sending or withdrawing. M-KESHO Has a standard charge

Customer Charges
Transaction Range (Ksh)		Transaction Type and Customer Charge (Ksh)
Min	Max	Transfer to other M-PESA Users	Withdraw from mkesho via ATM	Withdrawal from M-PESA Agent
10	49	3	N/A	N/A
50	100	5	N/A	10
101	500	27	30	27
501	1,000	33	30	27
1,001	1,500	33	30	27
1,501	2,500	33	30	27
2,501	3,500	33	30	49
3,501	5,000	33	30	66
5,001	7,500	55	30	82
7,501	10,000	55	30	110
10,001	15,000	55	30	159
15,001	20,000	55	30	176
20,001	25,000	82	30	187
25,001	30,000	82	30	187
30,001	35,000	82	30	187
35,001	40,000	82	30	275
40,001	45,000	82	50/100	275
45,001	50,000	110	50/100	275
50,001	70,000	110	50/100	330