PSPs · M-PESA · KENYA · MERCHANTS

Payment service providers in Kenya: how to choose the right route

Choosing among payment service providers in Kenya starts with how your customers pay and how much integration work your team can take on. This guide sets out the criteria to check, the main types of provider and a neutral comparison of each route.

Most Kenyan customers expect to pay with M-Pesa, so any provider you shortlist should handle M-Pesa collections reliably. Beyond that, the right choice depends on your stack, your payout needs and who maintains the integration. For the M-Pesa basics, see our M-Pesa payments overview.

Payment service providers in Kenya illustration
Criteria to check before you sign with any provider
Three routes:
direct Safaricom Daraja, a local gateway or an international gateway
A neutral comparison table covering integration, flows and maintenance
Regulatory context from the Central Bank of Kenya and the National Payment System Act 2011

Criteria for choosing a payment service provider in Kenya

Start with the operational questions, not the sales pitch. Ask each provider the same questions in writing so you can compare like for like.

  • Payment methods: which methods the provider actually supports in Kenya today, not on a roadmap.
  • Connection options: whether you can integrate by API, use a hosted payment page, or both.
  • Separate flows: how pay-ins (customer pays), payouts (business pays a customer) and merchant settlement (funds sent to you) are handled and reported.
  • Status updates: how your system learns whether a transaction succeeded or failed, for example through server-to-server postbacks.
  • Settlement timing: when settlement is sent to you, and what the provider means by that wording.
  • Reporting on success rates: how the provider measures them and whether the figure is overall or broken down.
  • Security practices: how API credentials are protected and how staff access is controlled.
  • Pricing: the full cost in KES, including any connection or per-transaction charges, confirmed in your agreement.

For a wider view of how gateways compare, read our guide to the best payment gateway in Kenya.

Types of payment service providers in Kenya

Merchants in Kenya usually choose between three routes. Each one shifts the integration and maintenance work to a different party.

Local M-Pesa gateway, such as Payment Gateway Kenya

A gateway connects your website or app to M-Pesa through one integration. Payment Gateway Kenya offers M-Pesa pay-ins, plus payouts where confirmed for the account, through an API (H2H) or a Hosted Payment Page.

Direct M-Pesa integration via Safaricom Daraja

Your developers connect straight to Safaricom's Daraja APIs. M-PESA Express (Lipa na M-PESA Online) is the prompt-style request started by a business, referred to as 'STK Push' in Safaricom documentation, while PayBill and Till are separate transaction types. Your team owns the build, testing and ongoing maintenance.

International payment gateway

Global providers are often built around card payments and may not support M-Pesa or Kenyan merchant accounts. Check each provider's own supported-country list before you plan around it.

Comparing the routes side by side

This table compares the routes on operational criteria only. It deliberately leaves out fees and licences, which you should confirm directly with each provider.

Neutral comparison of payment routes in Kenya (operational criteria only, no fees or licences)
CriterionLocal M-Pesa gatewayDirect Daraja integrationInternational gateway
Who builds the integrationYour team integrates once with the gatewayYour team builds directly against Safaricom's APIsYour team integrates with the provider's API or plugins
M-Pesa supportCore focus; confirm which flows are enabledDirect access to Daraja transaction typesVaries; check the provider's own documentation
Connection optionsTypically API and/or hosted payment pageAPI onlyTypically API, hosted checkout or plugins
Ongoing maintenanceShared with the gatewayFully on your teamShared with the provider
Transaction status to your systemProvided by the gateway, for example postbacksHandled through Daraja callbacks you build forProvided by the provider, for example webhooks
Availability for Kenyan businessesBuilt for the Kenyan marketAvailable to eligible Safaricom business customersCheck the provider's supported-country list
What to confirm in writingMethods, flows, settlement timing, pricing in KESAccount type, credentials, go-live stepsCountry eligibility, methods, settlement currency

Regulatory context in Kenya

How Payment Gateway Kenya works for M-Pesa

Payment Gateway Kenya is a payment gateway for M-Pesa pay-ins, plus payouts where confirmed for the account. In Kenya, the supported method is M-Pesa only.

Two ways to connect

Connect through the API (H2H) or the Hosted Payment Page. These are two ways into the same gateway, not separate products, and H2H is not white-label.

Three separate flows

Pay-in is when your customer pays you. Payout is when your business pays a customer. Merchant settlement is when funds are sent to you. Each flow is handled and reported separately.

Postbacks to your system

Postbacks send transaction status to your system so you can update orders. They are not a customer notification service.

Settlement and success rate

Merchant settlements are sent on the same day (T+0). Our overall transaction success rate is 85%, measured as successful transactions divided by all transactions.

Illustrative flow: the steps below show a typical M-Pesa pay-in. Your exact sequence depends on the connection route you choose.

  1. Customer chooses M-Pesa

    Your customer selects M-Pesa at checkout on your site or on the Hosted Payment Page.

  2. Payment request is sent

    The gateway starts the M-Pesa payment request and the customer confirms it on their phone.

  3. Status reaches your system

    A postback sends the transaction status to your server so you can confirm or cancel the order.

  4. Settlement is sent separately

    Merchant settlement follows as its own flow, separate from the pay-in.

Internally, we protect API credentials, use MFA and role-based access, and maintain business continuity planning and incident response. Pricing is Custom / Talk to sales. See pricing or ask our team for details.

Payment service providers in Kenya: frequently asked questions

Short answers to the questions merchants and developers ask most often when comparing providers. For anything not covered here, ask our team.

What is a payment service provider in Kenya?

A payment service provider lets your business accept payments from customers and, in some cases, send payouts. In Kenya, this usually means handling M-Pesa, either through a direct Safaricom Daraja integration, a local gateway or an international gateway.

Should I integrate with Safaricom Daraja directly or use a gateway?

A direct Daraja integration gives you access to Safaricom's APIs, but your team builds and maintains everything. A gateway gives you one integration and shares the maintenance work. The right choice depends on your developer capacity and the flows you need.

Which payment methods does Payment Gateway Kenya support in Kenya?

In Kenya, Payment Gateway Kenya supports M-Pesa only. It offers M-Pesa pay-ins, plus payouts where confirmed for the account.

When are merchant settlements sent?

Merchant settlements are sent on the same day (T+0). This describes when settlement is sent, not when funds are credited to your account.

What is Payment Gateway Kenya's transaction success rate?

Our overall transaction success rate is 85%, measured as successful transactions divided by all transactions. It is a product-wide figure, not a guarantee for any individual merchant.

Can I use Shopify Payments in Kenya?

Kenya was not on Shopify's official Shopify Payments country list when checked on 5 November 2026. Check Shopify's current list before you plan your checkout, and ask our team about your options.

How is the payments sector regulated in Kenya?

Payment services operate within the framework of the Central Bank of Kenya and the National Payment System Act 2011. Check any provider's regulatory position directly and take your own legal advice.

How much does Payment Gateway Kenya cost?

Pricing is Custom / Talk to sales. Contact our team with details of your business and the flows you need.

Talk to us about M-Pesa for your business

Tell us how you sell, which flows you need and how you would like to connect. Our team will confirm what is available for your account and talk you through pricing. Get started.