Applying for an M-PESA Paybill
How a Kenyan business applies for an M-PESA Paybill, the documents and ownership declarations Safaricom asks for, and how to run it day to day.
By Achekam · · 4 min read · For Running a business businesses in Kenya
For many Kenyan businesses, the moment customers start asking "what's your Paybill?" is the moment the business stops being informal. A school collecting fees, a landlord collecting rent, a water vendor billing monthly or a consultancy invoicing clients all reach the point where payments to a personal M-PESA line become impossible to track. A Paybill gives the business its own collection number, with each payment tagged to the customer who made it.
Getting one is a process with documents and declarations, and running it well needs a little thought about how customers identify themselves. This article covers what a Paybill is for, how to apply, the beneficial ownership information Safaricom asks for, how the account is managed day to day, and how to connect it to Achekam.
What a Paybill is for
Safaricom describes M-PESA Paybill as a cash collection service through which an organisation collects money regularly from customers, who enter the business's Paybill number and an account number that identifies them. It says Paybill payments are customer-initiated and suit customers who have an official relationship with the organisation they pay.
That makes the Paybill the natural choice for businesses with ongoing customers: tenants, parents, members, subscribers and clients on account. A shop serving walk-in customers often finds a Buy Goods till simpler, because nobody needs to type an account number; Buy Goods or Paybill? compares the two, and Business Till charges and uses covers the till side.
Applying at a Safaricom shop
Safaricom says a business applies for an M-PESA Paybill by visiting a Safaricom shop with a completed application form and the relevant documents. Safaricom's Paybill page links the documents involved:
- the M-PESA Customer-to-Business Service Application Form;
- the Paybill tariff guide;
- the Lipa na M-PESA Requirements 2026, which lists the supporting documents;
- a Declaration of Ultimate Beneficial Ownership Information;
- an Account Opening Authorization Form.
Download the current versions from that page before you go, and read the requirements document for what applies to your kind of business before you queue.
Your KRA PIN comes first
KRA says a PIN is required for a list of transactions that includes registering M-PESA pay bill and till numbers with telecom operators, along with registering a business name or company and opening accounts with financial institutions. Have the business's PIN certificate ready, and make sure the name on it matches the name on your registration documents and the application form.
Beneficial ownership declarations
The Declaration of Ultimate Beneficial Ownership Information asks who really owns and controls the business, not just whose name is on the registration. Safaricom explains why it asks: Kenya's AML/CFT (Amendment) Act, 2023 and the Proceeds of Crime and Anti-Money Laundering Regulations, 2023 require all financial institutions to collect, verify and keep up-to-date beneficial ownership information for all their business relationships. That is also why Safaricom asks existing M-PESA business customers to update their beneficial owners' details.
Before applying:
- List the people who ultimately own or control the business.
- Gather their identity documents and contact details.
- Check that the list matches what you have filed with the Business Registration Service, if you are a company.
- Diarise a review whenever shareholders or directors change, so the declaration stays current.
Managing the Paybill day to day
Once the Paybill is live, Safaricom says it can be managed from any handset through *234*4#, through the M-PESA Business App or through a web portal, with real-time reports and statements. Decide who in the business has access to each channel, and keep the ability to move money out of the account with as few people as practical, separate from those who only read statements.
Download the statement regularly. It is the source document for reconciling M-PESA receipts with your books, and reconciling M-PESA receipts explains how.
Registering the Paybill with Achekam
Connecting the Paybill to Achekam lets payments reach the books without retyping. A Kenyan business can register its Paybill or till, and a payment that quotes an open shilling invoice number as the account number is receipted automatically against that invoice, while any other payment waits in a list for a person to allocate.
To take M-PESA in production, the business must complete Safaricom's Go-Live for its short code and enter its own production short code, passkey and Daraja keys in Achekam. Safaricom e-mails the production passkey after Go-Live. Plan for that step; going live with M-PESA walks through it.
Account numbers customers should quote
What customers type in the account number field decides how much allocation work follows. If they quote the open invoice number, the payment is receipted automatically; if they quote anything else, such as a phone number or a name, a person allocates it. Print the account number to use on every invoice and statement, next to the Paybill number, and say it again in reminder messages.
A worked example shows the difference. A landlord invoices each tenant monthly. A tenant who pays to the Paybill quoting this month's invoice number has the payment matched to that invoice with no one touching it. A tenant who quotes their house number instead lands in the list, where the bookkeeper finds the tenant, picks the invoice and records the receipt. Both payments reach the books; one simply costs a person's time. Clear that list every working day, so a tenant who paid is never sent a reminder for rent already received.
Before you apply
Collect the forms from Safaricom's page, confirm your PIN details, prepare the beneficial ownership declaration with every owner's documents, and decide now which account number your customers will quote.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
