Dont worry - we have all encountered the same thing...

I was given flimsy excuses like 'you dont own that business' - even after clearly and expressly stating that the place would be rented upon approval of location.

It does also not make sense to spend money to upgrade the place until the place is approved - then you can get fundi to make the place once they give you a date of arrival for premise audit.

There are some people [the one who already have, and shall always have] who opened two Mpesa's in the exact same place within city center of Nairobi even after Safaricom had refused and quoted the place as "saturated".

[Note that the two businessmen who out bidded us for the same space are millionaires, and we had applied many months before them]


There is also the issue of new regulations that shops have to be 3m by 3m - obviously this does not apply to everyone [see attached image] - this mpesa outfit was opened after these rules and regulations.

Even the issue of minimum float for application of agency does not apply to everyone either.


Besides, I dont think the business has much returns any more - they reduced the agent commissions, but still charge the customers the same amounts for transfers and withdrawals - what this means is this :-

(1) Safaricom is now getting more money than previously for the transactions that initially used to profit the agents.

(2)It also means, that if you have competition then you need to get at least 40 customers per day to meet make any meaningful profit.

In the days Mpesa was newer, agents could comfortably break even in their business by having above 30 customers per day - but not anymore.
If you average 40-50 customers per day, you will barely make KSh. 15,000 - take away rent and employee wages - and you are left with ?

In conclusion - the process of granting agencies is no longer transparent.

Secondly unless you are assured more than 70 customers per day [this means a town outfit with little or no competition]

I dont think Mpesa is a viable business anymore - maybe a small added service to your main business - but its not worth the trouble of getting the agency granted.


My thots and analysis.

Please contact the regional managers of the areas you want to open the Mpesa (the regions go as per provinces) so that you can hear the exact reasons they have given for not evaluating your shops almost a year later.
These numbers can be got from the Mpesa support lines: 0722002134 or 0722002234