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Digital Payments5 min read

M-Pesa & ERPNext: Automating Payment Reconciliation

Manual bank reconciliation is a productivity killer. Learn how integrating M-Pesa STK Push and Paybill directly into ERPNext eliminates reconciliation headaches and keeps your books up to date in real time.

Kits Technologies Team5 min read
M-Pesa & ERPNext: Automating Payment Reconciliation

M-Pesa processes over $314 billion in transactions annually across East Africa. For businesses, that means a huge volume of incoming payments that someone has to reconcile with sales invoices — often manually, often slowly.

Our M-Pesa–ERPNext integration changes that entirely. Using Safaricom's Daraja API, we connect your Paybill or Till Number directly to ERPNext's Payment Entry module. When a customer pays, the payment is automatically matched to the corresponding Sales Invoice and marked as settled.

The integration supports:

  • STK Push for customer-initiated payments
  • C2B Paybill for self-service payments
  • Automatic journal entries and GL updates
  • Real-time cash flow visibility in ERPNext dashboards

One of our retail clients in Nairobi went from a 2-day reconciliation cycle to zero-lag, fully automatic reconciliation overnight. Their accounts team now spends time on analysis rather than data entry.

Beyond reconciliation, the integration enables automated payment confirmation messages to customers, reduces the risk of cash misappropriation, and gives finance managers an audit-ready transaction log at all times.

If you're running a Paybill-heavy business — schools, hospitals, retail chains, SACCOs — this integration will transform how your finance team operates.

M-PesaDaraja APIReconciliationERPNext

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Our team implements ERPNext, KRA eTIMS and M-Pesa integrations for organisations across Kenya and East Africa.

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