Payment methods in Kenya

M-Pesa is arguably the best payment platform.  It is operated by the mobile phone network, Safaricom.  It is a mobile based cashless payment and banking system.  It is not app based, so works on any type of mobile phone.  It is topped up with cash at any M-Pesa outlet, including banks, or using a money transfer service to top it from your home bank account.  Practically all retailers down to market stall holders use it, as well as individuals.  It almost totally negates the need to carry cash.  The system is also very secure, so if you lose or have your phone stolen, your account cannot be accessed.  You can hold up to Ksh 100,000 in your account.  There are a variety of saving options too, which pay around 6.6% interest.  There is a small charge for each transaction that is carried out, between payer and payee, but no charge for moving money between your own accounts, or using it to top up your phone credit.   

Be aware of scams. which usually involve calls to say that someone has transferred money to you in error, they then proceed to try and get key information from you to hack into your account.......often posing as Safaricom Customer Service.

Other mobile operators, such as Airtel also have a mobile money platform, but theirs is nowhere near as well developed.

You can also pay widely at larger retail outlets, hotels, restaurants with foreign debit/credit cards (with the Visa logo), using the 'Chip & PIN' system.  Be aware of exchange rate offered by your bank, plus any foreign transaction charges.

As the US Dollar is the East African Community trading currency, you can pay using $ and also often £, but traders will give you a poor exchange rate, so its really not worth it unless you are stuck for another payment method. 

Cash;  There are plenty of ATM's.  Withdrawal limits are around Ksh 30,000 to 40,000, but increasing numbers of banks have levied charges for using them, of up to Ksh 460 per transaction.  Its easy to withdraw cash from a foreign bank account, using your bank card.  Visa compatible is most widely recognised.  My (UK) bank offers quite a competitive exchange rate, but it is worth checking what yours offers.

Another very useful and comprehensible explanation - this time about the Kenyan money system which I've saved and also printed.
I now understand something that was not at all clear to me. Thank you.
Sarnia

The system is riddled with corruption. The Kenyan people are great. However, if you have the status of being a foreigner or expat, rest assured that any fee you can be charged for anything at all WILL be charged thanks to the political practices and policies. If you get stopped by a police officer, you can rest assured that you are going to pay a bribe or go to jail until you can get to the judge who will still exact the pay because the cops are drastically underpaid. If you have to transfer money TO Kenya as a foreigner there will be fees upon fees . Honestly, you can expect a nightmare when dealing with any Kenyan organization in regards to money. Then, the APPRECIATION system is how they label the bribery practices. On the flip side, if you understand the APPRECIATION system and utilize it...you can get anything done with enough money in hand.

The system is riddled with corruption. The Kenyan people are great. However, if you have the status of being a foreigner or expat, rest assured that any fee you can be charged for anything at all WILL be charged thanks to the political practices and policies. If you get stopped by a police officer, you can rest assured that you are going to pay a bribe or go to jail until you can get to the judge who will still exact the pay because the cops are drastically underpaid. If you have to transfer money TO Kenya as a foreigner there will be fees upon fees . You can honestly pay $60 just to send 300 - 400 USD. Honestly, you can expect a nightmare when dealing with any Kenyan organization in regards to money. Then, the APPRECIATION system is how they label the bribery practices. On the flip side, if you understand the APPRECIATION system and utilize it...you can get anything done with enough money in your hand.

"If you have to transfer money TO Kenya as a foreigner there will be fees upon fees."

Clowery:  Absolutely untrue.  I regularly transfer money to my M-Pesa account and pay something like between £1 and £3 with one money transfer service and the other one I use doesnt charge a fee, but offer slightly worse exchange rates.

It is so sad that you have such a cynical view and you have blown this out of all proportion, actually.   Don't get me wrong, I am well aware of bribery and corruption and most things being overpriced for foreigners, but I got used to it...........you'll be amazed a how prices come down once you walk away!

Never heard bribes being referred to as 'appreciation' - where did you get that one from?  Kenyans usually say something like 'its thirsty work out here and my throat is dry', or 'I need a cup of tea', or ' I need kitu kidogo (something small)'.

Honestly, I could care less about your opinion about my facts. What I have experienced is what I have experienced. As I have said, I love the Kenyan PEOPLE. It's the system and it's treatment of expats that is very difficult and I stand solidly on that statement whether you agree with it or not. I can bring receipts for everything that I said and would tell any foreigner to look differently at Kenya if they don't have a whole lot of money. The expression "appreciation" comes from locals who are in the know. You can roll around in semantics but the truth is that bribery or corruption by any name is still just that.  Furthermore, you cannot tell me that the facts of my experience as a foreigner who has been in Nairobi since October of 2018 are invalid. They are ABSOLUTELY true....whether you like them or not. If you want to press the matter I can bring documentation and details even beyond what I stated earlier. Trust me. You need to leave this alone. Everything that I stated is true. I said what I said and will not take back one word of it as those things are merely a small portion of the experience. As far as cynicism is concerned Kenyans are cynical  and frustrated too. And anyone who deals with the truth of these matters will tell you that. Put any spin you want out there. I will still stand on my facts.

If you have to transfer money TO Kenya as a foreigner there will be fees upon fees."

"Longnot: Absolutely untrue.  I regularly transfer money to my M-Pesa account and pay something like between £1 and £3 with one money transfer service and the other one I use doesnt charge a fee, but offer slightly worse exchange rates."

Mpesa may be a cheaper way to go for someone who has access to and knows how to use it easily....but what of us who don't have an Mpesa account or know about it? Realism sounds cynical to people who want to avoid truths beyond their own. However, to be truly optimistic you have to start with the facts otherwise it's a fantasy. 

Since you insist though:

1. I took money out of a local Tanzanian ATM to send back to Nairobi for rent. The ATM took a total of $7 US plus the $10 US for the withdrawals. Then NIC bank took $25 to transfer the money to THEIR  own account in Nairobi Kenya . Then when they do the conversion  I lost another $12 US. Total : $54   
Mind you....the TRANSFER was to their own account even if it was in Kenya.

2. When making withdrawals in Nairobi for the same transaction I will still pay a minimum of $30 to get the money to the landlord.

3. Kenya is on the British system. England prints their money and has intimate connections and control in their system. It's natural that using British pounds, as well as British financial institutions, would be an easier task as well as cheaper. But for everyone else....forget about getting things done cheaply if it is discovered that you are a foreigner. That is an honest statement based on firsthand experiences and observation.


Which one is more of a threat to people having a good experience: your fantasy sprinkled with misleading half-truths or my fact based experience of a non-UK foreigner?
It would be more accurate for us to all frame our response around our context. I am a US citizen and my experience comes from that context in Nairobi. Those things are important to know. Anything that appears to be cynical here is based on your glossing over the various factors that would allow others to fully assess these experiences.

Thanks

Clowery; England doesn't print Kenyan money , or control their monetary system and there are no special privileges extended to UK citizens.  Furthermore, in terms of foreign currency, Kenya prefers the $ to the £. 

I only transfer money between the UK and Kenya, and like you, I absolutely stand by what I say.  Its about finding and using the best money transfer service and I believe that at least one of these is also available to US citizens.  I can also produce documentation to prove it too!!   However, I don't transfer money between East African countries, so perhaps this is what you are basing your experience on.  For a bank to bank transfer UK to Kenya, I pay around £15.  For Kenya to UK, about Ksh1500.   But a money transfer service is always cheaper.   I have just transferred around £500 to Kenya (M-Pesa) and the fee was £3. 

Some ATM's charge Ksh 460 to withdraw cash and there are charges for operating an account, but I would hesitate to call these 'corruption'.  Sure, there is no free banking in Kenya, but different banks have different charges and we looked into this when we were choosing who to bank with.  It is also why M-Pesa has become so widely used

"Mpesa may be a cheaper way to go for someone who has access to and knows how to use it easily....but what of us who don't have an Mpesa account or know about it?" 


M-Pesa is available absolutely anyone with a Safaricom account and is by far the cheapest and most convenient method of managing finances.  I cannot believe that you have been in Kenya since October 2018 and never heard of it........its is very widely advertised and signs are everywhere, for one thing.  Almost everyone has an account, probably including your landlord.  It's the most accessible and easy to use system - doesn't even require a smartphone.  It's much cheaper than traditional banks and is cashless.  I can pay my Kenyan wages and bills from the UK, using it.  What's not to like?

"Since you insist though:"

I didn't!  If you read my post, Clowery, at no point did I say 'Prove it'! Quite honestly, I'm not interested in your financial transactions and 'documentation'.  Neither I am I denying that you have personally experienced those charges - I can't, I don't know you.............but I do stand by my statement that money transfers to Kenya, do not come with 'fees on fees'..........just fees and reasonable ones, if you have done your homework properly.

Which one is more of a threat to people having a good experience: your fantasy sprinkled with misleading half-truths or my fact based experience of a non-UK foreigner?

This is really quite insulting, Clowery.  You have been in Kenya for less than a year.  I have been there on and off since 2002.  I am married to  a Kenyan.  We have bought and sold 4 properties, 4 pieces of land, several vehicles, have registered a company.  I have been dealing with the Kenyan banking and finance system for all those years. 

Before I came to Kenya, I was a victim of ID theft and card fraud in the UK, both of which have made me extremely careful.

You may notice that I have not denied that there is a high level of corruption and dual pricing, in Kenya.  This certainly isn't anything new and was much much worse when I first went there.  However, financial scams happen across the world, they're not exclusive to Kenya (see above). 

Your assumption that you being from the US and me being from the UK means that our finances are treated differently...........now that is fantasy...........your fantasy.  I have met plenty of US citizens in Kenya and have yet to meet one who has come up with the same issues that you have. 

I am sorry that you have been 'ripped off', but I think it has more to do with your inexperience.  The 'I've never heard of M-Pesa' bit really says it all.