Quick Cost Summary
- Basic Off-Shelf POS: KSh 30,000 - 80,000 (software + basic hardware)
- Premium Off-Shelf POS: KSh 80,000 - 150,000 (with all features)
- Custom POS System: KSh 200,000 - 800,000 (built for your business)
- Monthly Subscriptions: KSh 2,000 - 15,000/month
A POS system is one of the most important investments for any retail business or restaurant. But with so many options—from free apps to systems costing millions—how do you know what's right for your business?
Let me break down the real costs you'll face in Kenya, including the hidden fees nobody talks about.
Three Types of POS Systems
1. Free/Low-Cost Cloud POS
Best for Starting OutFree - KSh 5K/mo
Examples: Loyverse, Square (limited in Kenya), Hisab Kitab
Best for: Single-location shops, small cafes, market vendors
- Works on your existing phone or tablet
- Basic sales tracking and inventory
- Limited customization
- May not have M-Pesa integration
2. Premium Off-the-Shelf POS
Most Popular ChoiceKSh 50K - 150K
Examples: Vend, Lightspeed, Toast (restaurants), local options like Kasha POS
Best for: Established retailers, restaurants, multi-location businesses
- Full inventory management
- Employee management & shifts
- Customer loyalty programs
- Some have M-Pesa integration
- Reporting and analytics
3. Custom-Built POS
Maximum FlexibilityKSh 200K - 800K+
Best for: Unique business models, chains, businesses with specific workflows
- Built exactly for your business
- Full M-Pesa & local payment integration
- Works offline (critical in Kenya)
- Connect to your existing systems (accounting, ERP)
- No monthly subscription fees
- You own it forever
Hardware Costs
Software is just one part. You'll also need hardware:
| Hardware | Budget Option | Premium Option |
|---|---|---|
| Tablet/Touch Screen | KSh 15,000 - 30,000 (Android tablet) | KSh 50,000 - 100,000 (iPad or dedicated terminal) |
| Receipt Printer | KSh 8,000 - 15,000 (thermal) | KSh 20,000 - 40,000 (heavy-duty) |
| Cash Drawer | KSh 5,000 - 10,000 | KSh 15,000 - 25,000 |
| Barcode Scanner | KSh 3,000 - 8,000 | KSh 15,000 - 30,000 (wireless) |
| Card Reader | KSh 5,000 - 15,000 | KSh 20,000 - 40,000 |
| Kitchen Display (Restaurant) | KSh 20,000 - 35,000 | KSh 50,000 - 80,000 |
Budget Hardware Setup
For a small shop, you can start with:
- Android tablet: KSh 20,000
- Thermal printer: KSh 10,000
- Cash drawer: KSh 7,000
- Total: ~KSh 37,000
Essential Features for Kenya
M-Pesa Integration
Accept mobile money directlyOffline Mode
Works without internetInventory Tracking
Know what's in stockKRA Compliance
ETR/eTIMS readyStaff Management
Track employee salesSales Reports
Daily, weekly, monthlyCustom vs Off-the-Shelf: Which to Choose?
| Factor | Off-the-Shelf | Custom-Built |
|---|---|---|
| Initial Cost | KSh 30K - 150K | KSh 200K - 800K |
| Monthly Fees | KSh 2K - 15K/month | None (you own it) |
| 5-Year Total Cost | KSh 150K - 1M+ | KSh 200K - 800K |
| M-Pesa Integration | Sometimes | Built-in |
| Offline Mode | Limited | Full offline |
| Customization | Limited | Unlimited |
| Setup Time | 1-3 days | 4-8 weeks |
| Support | Online/Email | Local developer |
Choose Off-the-Shelf If:
- You're a single small shop
- Your processes are standard (no unique workflows)
- You need to start immediately
- You don't need deep M-Pesa integration
Choose Custom-Built If:
- You have multiple locations
- You need specific features (unique pricing, special discounts)
- M-Pesa is critical to your business
- You want to avoid ongoing subscription fees
- You need to integrate with existing systems (accounting, ERP)
- Offline operation is essential
Custom POS Cost Breakdown
If you're considering a custom POS, here's what goes into the cost:
Basic Custom POS
KSh 200,000 - 350,000
- Product catalog & barcode scanning
- Sales processing & receipts
- Basic inventory tracking
- Daily sales reports
- M-Pesa integration
- 1-2 user accounts
Timeline: 4-6 weeks
Standard Custom POS
KSh 350,000 - 550,000
- Everything in Basic, plus:
- Full inventory management with alerts
- Employee management & permissions
- Customer database & loyalty
- Multiple payment methods
- Advanced reporting & analytics
- Web admin dashboard
- Offline mode with sync
Timeline: 6-10 weeks
Enterprise Custom POS
KSh 550,000 - 800,000+
- Everything in Standard, plus:
- Multi-location support
- Central inventory management
- Franchise/branch management
- Integration with accounting software
- Kitchen display system (restaurants)
- Table management (restaurants)
- Advanced analytics & forecasting
Timeline: 10-16 weeks
Hidden Costs to Budget For
- Internet backup: KSh 3,000-8,000/month (MiFi or backup line)
- Hardware replacement: ~10% of hardware cost annually
- Staff training: 1-2 days of lost productivity per employee
- Receipt paper: KSh 500-2,000/month depending on volume
- Software updates: Free with subscriptions, KSh 20,000-50,000/year for custom
- KRA eTIMS compliance: May require additional setup (KSh 10,000-30,000)
Frequently Asked Questions
Off-the-shelf POS systems cost KSh 30,000-150,000 for software plus hardware. Custom-built POS systems cost KSh 200,000-800,000. Monthly subscriptions range from KSh 2,000-15,000.
For small retailers, Loyverse (free) or Vend work well. For restaurants, consider TouchBistro or a custom solution. If you need M-Pesa integration and offline mode, a custom-built system often works best.
Yes! Most modern POS systems in Kenya support M-Pesa integration through the Daraja API. This allows customers to pay via M-Pesa and automatically records the transaction. Integration costs KSh 20,000-50,000 extra for custom systems.
If you have inventory to track, multiple products, or employees handling sales, yes. Even a free POS like Loyverse is better than paper records. It helps you track what sells, prevent theft, and make better business decisions.
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