Business, Mpesa, PayBill

M-Pesa Paybill Ultimate Guide – How To Apply, Register & Pay Bills

If you are interested in Mpesa Paybill registration, the documents needed to apply for Paybill and how to pay for bills such as NHIF, Zuku, water bills, GOTV among 0thers then read on.

What is PayBill?

PayBill is an entire cash collection service that allows your business to collect payments on a systematic way from your customers through M-PESA. This is an easy and secure payment over the phone, across the counter anywhere.

Benefits of Using Mpesa PayBill Services

  1. Secure way of sending money; Safe and convention method to receive payments over the phone and anytime.
  2. Convenient in making payments:  No stress, hence no need to search for change unlike in cash transactions
  3. Real-time settlement of debts: No delays for credited funds to reflect on the system.
  4. Low cost: least transaction cost required
  5. Easy to keep track and balance your book on payments
  6. There is Instant Payment which ensures that your payments reflect on the biller’s system immediately
  7. Many Payment Options  means you can pay your bills from any time using Mpesa, Airtel money and  any of the extension methods provided by the business
  8. You can always Set Up Reminders, email and SMS reminders to be sent to you when bills are due to avoid disconnection by service providers.
  9. There are Diaspora Payments, pay bills for your business services, family and loved ones through PayPal, using Visa or MasterCard directly.

Application of the Mpesa PayBill Services

  1. Paying Utility bills – water, power, Pay TV.
  2. In Rent payments – Lipa Kodi
  3. In-School fees payments – Lipa Karo
  4. In Bank and SACCO account deposits
  5. In Statutory payments – NHIF, NSSF, KRA
  6. Used for Top-up of prepaid cards – fuel cards, debit cards e.g. Tuskys Global.

Features of Mpesa PayBill Service

  1. It has its head office and a limitless number of child Pay Bill accounts.
  2. Each child Pay Bill account has a dissimilar name and shortcode
  3. A business terminal can be attached to each sub-account and receive notifications for Payments.
  4. There is always allowance for the account number for each child account
  5. There are web access and settlement of funds to Bank can only be done at Headquarters

Cases where Mpesa PayBill Service is used.

  • Banks accumulated payments for merchants that Bank with them
  • Prepaid Distribution where distributors require account number details for meeting payments such as invoice numbers
  • County Revenue Collection set up for different Pay Bill accounts for the different revenue collection points but banks are centralized.

How to apply for short term Mpesa Paybill

It is a practice among people to reach out to the public for financial assistance whenever they are faced with different emergency situations.

Whenever this need arises people have always turned to the use of popular mobile money service M-PESA for sending contributions to a personal phone number.

However, this does not exactly elicit trust hence the use of a short term Lipa Na M-PESA paybill numbers that get terminated after a certain period ends. 

Furthermore, an M-PESA account can hold a maximum of Ksh100, 000 only that means, you will need a short term paybill account if you anticipate collecting more than that amount. 

The short term paybill account operates 24/7 hours a day and can collect a maximum of Ksh 100 million. Once the hired time expires (hired for 1-6 months) the amount collected is transferred to the bank.

Here are some most regular occasions that may require applying for a short term paybill account: Wedding contribution, Medical fund, Education, Harambee, Funeral contribution, Church fundraising, Charity, Catastrophes

How to apply for a Short term Mpesa Paybill account online

Safaricom has now introduced an online platform that is meant to make this process fast, easy and seamless. Includes: 

      1. Visit the online M-PESA paybill portal alternatively click here for a direct link.
      2. Select the type of paybill account number you wish to apply. For this case, will choose the short term pay bill
      3. Under the requirements, click on the appropriate function for the M-PESA pay bill number you wish to apply for an example for a wedding.
      4. 4. Take Note of the documents required and then click on the submit/apply button at the bottom.
          • Fill the fields marked with the asterisk symbol. Always remember to provide correct information to speed up the application process.
          • Provide your bank account details but first check with your bank to confirm whether they are on Real-Time Settlement to avoid unnecessary fees charges.
          • Click on the Register icon and proceed to set up and verify a One Time PIN.
          • Last, upload the scanned copies of the necessary document according to your applications.
          • Finally, submit your application and wait for 24 hours for your application to be processed.

Medical fund required Documents

Note: All the documents should be in soft copy format. 

    1. Duly filled and signed Short term pay bill application form indicating reasons and duration for event collection.
    2. all  terms and conditions should be signed
    3. Original national ID and PIN certificate of the applicant.
    4. Certified supporting documents from the Doctor treating the patient who should confirm the need for the collection e.g. reference to an operation treatment (on institution’s letterhead, stamped and fully signed by authorized personnel).
    5. And If applying on behalf of the beneficiary e.g.
  1. For a minor: the parents/guardians of the child should apply and the child’s birth certificate should be attached to the rest of the documents. 
  2. For a person who is incapacitated: certified copies of National IDs & PIN Certificates for both parties will a requirement.

Documents requirements for an education fund

    1. Filled and signed Short term pay bill account Application forms stating purpose and duration.
    2. Fully Signed Terms and Conditions.
    3. Certified national ID and PIN Certificate of the person applying.
    4. Certified supporting documents from the Institution stating the need for the fund (on the institution’s letterhead, stamped and signed by authorized personnel e.g. principal, director etc.).
    5. If applying for the beneficiary;
  1. for a minor: the parents/guardian of the child should apply and attach a child’s birth certificate 

Documents required for a funeral fund

    1. Duly filled and signed Short term pay bill account Application forms stating reasons and period.
    2. Fully read and Signed Terms and Conditions.
    3. Certified national ID and PIN Certificate of the person applying
    4. Certified Notice of Death  from the village elder
    5. Proof of the Next of Kin

6) Certified copy of national ID of the Next of Kin (verified by an advocate)

Documents required for wedding fund

    1. Duly filled and signed Short term pay bill account Application forms stating reasons and period.
    2. read and Signed Terms and Conditions
    3. Certified national ID and PIN Certificate of the applicant applying or being applied for.
    4. Letter from the institution that is to wed the couple e.g. church.
    5. Clearance letter from Attorney general’s office (Registrar of Marriages).
    6. Certified copies of national ID & PIN Certificate for the couples (certified by an advocate in charge).

Documents required for charity or catastrophe 

    1. Duly filled and signed Short term pay bill account Application forms stating reasons and period.
    2. An official letter to be written by the executive committee members and signed by at least two executive committee members.
    3. A letter from the bank showing that an account has been set up for the intended purpose, as specified in the letter.

Documents required for a church fundraising 

    1. Duly filled and signed Short term pay bill account Application forms stating purpose and period.
    2. An official letter from the Church authorizing fundraising and also listing committee members of the church. It should be signed by at least two committee members.
    3. Any other official document from the church should be attached.

How to withdraw funds from Short term PayBill Account 

Once the funds have been deposited, you will have to make a request to Safaricom through an email to short-termpaybill@safaricom.co.ke to withdraw the funds.

Safaricom Upon receipt of your request, the funds will be rolled up to the bank account you gave during application earlier.

How To Acquire M-Pesa Pay Bill Number For Your Business

General Paybill registration requirements

  1. Download terms and conditions document read understand and sign it.
  2. Also, download the M-Pesa pay bill and Merchant USSD application forms and fill it well.
  3. Make sure that you  sign tariff guide
  4. Other requirements are specific to the type of business that one operates. 

Mpesa Paybill Registration For A Sole Proprietorship

In addition to above-mentioned conditions, for a sole proprietorship to be registered, then he/she must present:

  • Copy of national ID number or Passport number
  • Business registration certificate copy
  • Business photo utility name paid in the name of the business to confirm its existence.
  • Confirmed bank account details

Paybill Registration Requirements For Partnership Company

The documents to be presented in addition to the above general ones listed above include:

  • A copy of partnership  or  deed
  • Recent utility bill account
  • Partnership  KRA PIN or individual’s KRA PIN
  • Copy of identification documents of the person opening the account.
  • signed letter from the partners on company letterhead indicating:
  1. Bank account details
  2. Selected  Safaricom number authorized to make withdrawals
  3. Authorized account dealers

Requirements: Registration Of Paybill Number For Unlimited Company

An unlimited liability company pay bill account registration further requires the following:

  • A stamped copy of the certificate of incorporation
  • KRA pin certificate- for company and Directors
  • The original stamped company sealed Board Resolution on company letterhead signed by at least two directors within 30 days indicating:
    1.  Authority to open a pay bill account on behalf of the company.
    2. Appointed signatory personnel having authority and provides copies of their identification documents.
    3. Bank account details.
    4. Selected  Safaricom Number to initiate fund withdrawal of funds on behalf of the company(not compulsory)
  • Copy  of CR12 WITH VALIDITY PERIOD OF 30 DAYS or Annual Returns with filing receipt
  • Business Photocopy of a utility bill accounts to confirm its existence.
  • Copy of Identification Documents of Personnel Opening the account, i.e. Copies of the National ID Number (Passport/Alien Certificate for Foreign Nationals etc.).
  • letter from Bank confirming Bank account details

Requirements: Registration Of Paybill Number For A Parastatal

As an addition to requirements presented in the first segment, when registering for parastatals, should be sure to meet the criteria as below:

  1. Original Stamped board decision on company letterhead signed by at least two directors within 14 days indicating:
    • Authority to open a pay bill account business on behalf of the company
    • Appointed company signatory authority.
    • Bank account details.
    • Selected Safaricom Number to initiate fund withdrawal on behalf of the company.
  2. Copy of Identification Documents used by Signatory Directors.
  3.  letter from Bank confirming Bank details

Requirements: Registration Of Paybill Number For Non-governmental Institutions

  1. A copy of Certificate of Registration
  2. Duly Signed Letter on letterhead from the NGO Board confirming Registration and existence including officials.
  3. Original company seal board resolution on NGO letterhead signed by at least two directors(Committee) within 30 days stating:
    • Authority to open a pay bill account on behalf of the NGO.
    • Appointed  signatory authority personnel 
    • Must provide copies of their identification documents.
    • Bank accounts details.

Applications For Paybill In Day To Day Business

Pay you’re for the following services:

Bills online or directly from your mobile with extensive payment options made available

How To Pay Zuku Using Paybill

For Using MPESA

  1. Go to the M-Pesa Menu
  2. Select Pay Bill
  3. Enter Business No. 220220
  4. Enter Account No. ZUKUXXXXX (Where XXXXX is your Zuku account number)
  5. Enter the Amount
  6. Enter your M-Pesa PIN then send

Using Airtel Money

  1. Go to the Airtel Money Menu
  2. Select Make payments
  3. Select Pay Bill then Other
  4. Under business name enter pesapal
  5. Enter Amount
  6. Enter your Airtel Money PIN
  7. Under Reference enter ZUKUXXXXX (Where XXXXX is your Zuku account number) 

How To Pay Electricity Bills & Tokens Using Paybill

Buy Kenya Power Tokens or pay for your postpaid bill and have it posted instantly with extensive payment options made available for your convenience.

For Using MPESA

  1. Go to the M-Pesa Menu
  2. Select Pay Bill
  3. Enter Business No. 220220
  4. Enter Account No. PAWAXXXXXXXXXXX (Where XXXXXXXXXXX is your 11 Digit Meter Number)
  5. Enter the Amount
  6. Enter your M-Pesa PIN then send

Using Airtel Money

  1. Go to the Airtel Money Menu
  2. Select Make payments
  3. Select Pay Bill then Other
  4. Under business name enter pesapal
  5. Enter Amount
  6. Enter your Airtel Money PIN
  7. Under Reference enter PAWAXXXXXXXXXXX (Where XXXXXXXXXXX is your 11 Digit Meter Number)

How To Pay NHIF Via Paybill Number, Using NHIF Account Number

Self-employed Kenyans and other Kenyans who wish to make voluntary NHIF contributions can pay NHIF via Mpesa pay bill account.

  1. Go to the Safaricom menu and select MPESA.
  2. Choose the Pay Bill option.
  3. For the M-Pesa NHIF Pay bill number (business number), enter 200222.
  4. Enter your contributor’s National Identity Card Number.
  5. Enter the amount to contribute.
  6. M-PESA asks for your M-PESA PIN. Enter your Mpesa PIN and hit OK.
  7. M-PESA gives you the confirmation screen. Carefully confirm that all the details are correct. Press OK to finish paying NHIF via Mpesa.
  8. You will receive an M-PESA Transaction confirmation text!

How To Pay NHIF via Paybill Transaction Charges

Following are the NHIF payment rates for NHIF Mpesa pay bill payment, charged by Safaricom when you pay via Mpesa.

To calculate your actual NHIF monthly contribution, check this new NHIF rates table, whose premium deductions depend on your salary range.

Min. Amount (Ksh) Max. Amount (Ksh) Charge (Ksh)
10 49 3
50 99 5
100 499 22
500 999 22
1,000 1,499 22
1,500 2,499 22
2,500 3,499 33
3,500 4,999 33
5,000 7,499 33
7,500 9,999 33
10,000 14,999 33
15,000 19,499 33
20,000 24,999 33
25,000 29,999 33
30,000 34,999 33
35,000 39,999 44
40,000 44,999 44
45,000 49,999 44
50,000 70,000 55

How To Pay Water Bill Via Mpesa Or Airtel

 If your water supplier is Nakuru City Water and Sewerage Company, you can pay your water bill via M-PESA pay bill as follows:

  1. Select Pay Bill from your M-PESA menu
  2. Enter the  business number  444400
  3. Next, enter the billing account no
  4. Next, enter the amount you wish to pay
  5. Key  in your M-PESA PIN
  6. Confirm details if correct and press OK
  7. After some minutes, you will receive a confirmation message from MPESA confirming the Payments
  8. For Airtel users replace the Business No with  “Nakuru Water”

If you live in areas outside Nakuru, the procedure of paying by M-PESA is the same. However, the pay bill numbers for each region differ. Below are pay bill numbers of some of the towns in Kenya

  1. Mombasa Water Supply and Sanitation Pay bill number: 895 500
  2. Kisumu Water Company Pay bill number: 517 000 
  3. Nakuru Water Pay bill number: 111 444
  4. Eldoret Water Pay bill number: 511 000
  5. Nithi Water and Sanitation Pay bill number: 901 325
  6. Kiambu Water Pay bill number: 885 100 
  7. Garissa Water Pay bill number: 880 600
  8. Mavoko Water and Sewerage Company Pay bill number: 363 100 

Drawbacks of using Mpesa Paybill

You don’t have to press okay-When you do automatic bill payment, the money will go out of account whether you want it or not to. There is no mechanism in place to keep your account from being overdrawn; this can lead to bouncing of checks and overdraft fees, particularly if several bills hit your account at the same time.

You don’t feel the pain of your money. When you pay bills through the phone, you don’t have to be looking at the bill or writing checks, however, you don’t feel the pain of money leaving your hands. This can create a false sense of financial security.

You can get too lazy. When you are not used to paying the bills yourself, you can be lazy with your money. You can stop reviewing bills to make sure they’re correct. You can forget why you are trying to get out of debt every time. 

The Verdict

Whether you pay your bills manually or use automatic withdrawal, you still need to be realistic about making and keeping a budget for your expenditure. This simple habit will make you avoid being broke and will keep you on track and out of trouble. It makes every coin accountable and gives boundaries for your spending on every activity.

 

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4 thoughts on “M-Pesa Paybill Ultimate Guide – How To Apply, Register & Pay Bills

  1. Adrian says:

    Thank you, I like it!

    1. feizel says:

      You welcome

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