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Money and M-Pesa

How to collect welfare contributions through M-Pesa paybill

Stop collecting into an official's personal number. Here is how to set up a paybill so every shilling is traceable to the right member.

By the Jalika team

Most welfare contributions in Kenya arrive by M-Pesa. How you collect them decides whether the treasurer spends five minutes or five evenings a month matching payments to names, and whether members trust the figures.

Personal number, till or paybill?

Option Good for Problems
Official’s personal number Very small groups starting out Mixes welfare money with personal money; no account reference; hard to audit; risky if the official changes
Buy Goods till Shops No account number, so you cannot tell whose payment is whose
Paybill Welfares and associations Members enter an account number, so each payment carries the member’s reference

A paybill linked to the welfare’s bank account is the standard for any welfare beyond a handful of members. Apply through Safaricom’s business channels; requirements change, so check the current list before applying. Registration and a bank account in the welfare’s name are usually needed, which is another reason to register your welfare.

Give every member an account number

The account number members type is the key to tracing payments. Use one simple, unique format, for example:

  • UMJ-0142 (welfare initials plus a number), or
  • the member’s ID number, or
  • their phone number

Member numbers are best: short, unique and they do not reveal personal data. Put the member number on every statement and reminder so members always know what to type.

Separate different payments

If members pay monthly contributions, levies and registration fees, decide how you will tell them apart. Two common approaches:

  1. One account number, applied in order. Payments clear the oldest amount owed first. Simple for members.
  2. A suffix per purpose, for example UMJ-0142-LEVY. More precise, but members make more mistakes.

Most welfares do best with approach 1 plus clear statements.

Receipt every payment

A receipt confirms to the member that the welfare received the money and recorded it against them. Send it by SMS within minutes of payment, with the receipt number, amount, purpose and new balance.

Reconcile monthly

At least once a month, compare three things:

  1. The paybill statement
  2. The bank statement
  3. Your contribution records

Every payment should appear in all three. Look out for wrong account numbers (assign them to the right member and note why), payments by someone else on a member’s behalf, and duplicate payments (refund or carry forward as credit, and record which).

Let the system do the matching

Done by hand, this is the treasurer’s biggest job. With a paybill connected to Jalika’s M-Pesa contribution tracking, each payment is matched to the member automatically, receipted by SMS and added to their statement. Payments with an unrecognised account number wait in one queue for the treasurer to assign.

Put these rules into practice

Jalika keeps your register, contributions, levies and claims in one place, and applies your constitution's rules automatically.