For most transfers from the US to Kenya, the choice is between M-Pesa, Safaricom's mobile money service, and a Kenyan bank account. Either way the money arrives in shillings, usually within minutes. Because the shilling has barely moved since late 2024, what you pay comes down mostly to the fee and the exchange-rate margin. This page covers both payouts, the costs, the details your recipient must give you, Kenyan taxes, the busiest months in Central Bank of Kenya (CBK) data and the mistakes to avoid. New to international transfers? The money transfer hub explains how they work.
How do M-Pesa payouts from the US work?
Your transfer service converts the dollars and credits shillings to the recipient's registered M-Pesa number, usually within minutes, and receiving the money costs the recipient nothing.
Safaricom's limits decide how much can arrive at once: KES 250,000 per transaction, KES 500,000 per day, and a maximum wallet balance of KES 500,000. At the CBK's rate of KES 129.95 per dollar on October 30, 2026, a single credit tops out at about $1,924. Only registered accounts can receive international transfers, and registering needs a Kenyan ID or a passport.
Fees start once the money moves on. Sending it to another M-Pesa user costs up to KES 108, and withdrawing cash at an agent follows Safaricom's banded tariff:
| Amount withdrawn at an agent (KES) | Fee (KES) |
|---|---|
| 50 to 100 | 11 |
| 101 to 2,500 | 29 |
| 2,501 to 3,500 | 52 |
| 3,501 to 5,000 | 69 |
| 5,001 to 7,500 | 87 |
| 7,501 to 10,000 | 115 |
| 10,001 to 15,000 | 167 |
| 15,001 to 20,000 | 185 |
| 20,001 to 35,000 | 197 |
| 35,001 to 50,000 | 278 |
| 50,001 to 250,000 | 309 |
Because each band is a flat fee, one large withdrawal costs far less than several small ones: KES 309 to take out KES 60,000 at once, against KES 690 for six withdrawals of KES 10,000. For agents, float and how wallets work in general, see mobile money explained.
Why does sending dollars to Kenya cost more than sending them to Nigeria?
Mostly because of the exchange-rate margin: in the World Bank's Q3 2025 survey it averaged 1.94% on $200 to Kenya, against 0.48% to Nigeria, while fees were similar.
| Amount sent | Average fee | Exchange-rate margin | Total cost (% of amount) | Total cost |
|---|---|---|---|---|
| $200 | $4.64 | 1.94% | 4.26% | $8.52 |
| $500 | $7.34 | 1.89% | 3.36% | $16.78 |
Sending $200 cost 4.26% on average, or $8.52, and sending $500 cost 3.36%, or $16.78. The survey priced services between August 12 and 20, 2025 against a reference rate of KES 129.20. Margins stretched from −3.29%, a bank quoting KES 133.45 but charging a $5.99 fee, to 5.70%, and the costliest $200 option came to 11.26%. One service paid out in dollars and was recorded with no margin at all; with a dollar payout, the conversion cost simply moves to the day the recipient changes the dollars into shillings. None of these figures includes the agent fee your recipient pays to withdraw cash.
The table converts common amounts at the latest mid-market rate and after markups of 1% and 2%:
| You send | At the mid-market rate | With a 1% markup | With a 2% markup |
|---|---|---|---|
| $250 | KES 32,484 | KES 32,160 | KES 31,835 |
| $500 | KES 64,969 | KES 64,319 | KES 63,669 |
| $1,500 | KES 194,907 | KES 192,958 | KES 191,008 |
For the arithmetic behind a markup, see exchange-rate markups; the mid-market rates here come from the sources in our exchange-rate methodology.
Worked example: $500 to an M-Pesa wallet in Nairobi
- At a mid-market rate of KES 129.95, the CBK's rate on October 30, 2026, $500 is worth 500 × 129.95 = KES 64,975.
- The quote offers KES 127.48, a markup of 1.9%, so the wallet receives 500 × 127.48 = KES 63,740.
- The KES 1,235 shortfall is worth $9.50 at mid-market. Add the $3.99 fee and the transfer costs $13.49, or 2.70% of $500, below the World Bank's 3.36% average for this amount.
- If the recipient withdraws it all at an agent, the KES 50,001 to 250,000 band costs KES 309, leaving KES 63,431 in cash.
Our money transfer cost calculator runs the same two-part sum for pounds and rupees, and the steps above work the same way for shillings.
Bank deposits and PesaLink
A bank account is the better destination above M-Pesa's KES 250,000 cap, for school fees billed to a bank account, and for anyone who wants a clean paper trail for land or a building project. Your provider's Kenyan partner bank credits its own customers directly. For accounts at other banks, the money can travel over PesaLink, the instant payment service that links Kenya's banks.
PesaLink runs around the clock and handles KES 10 to KES 999,999 per transaction, though each bank can set lower limits. It pays to an account number or to a phone number the recipient has linked to their account, and it shows the account name before the payment is confirmed. It carries shillings only, so the conversion happens before the money enters it. Some US services instead pay dollars into a Kenyan bank's dollar account, which leaves the recipient to convert later at their bank's rate.
Recipient details for M-Pesa and bank payouts
Get these in writing from the recipient, and send a small test amount first if you are paying a new number:
| Detail | Format | Obviously fake example | Notes |
|---|---|---|---|
| M-Pesa number | +254 and 9 digits, written locally with a leading 0, as in 07 or 01 numbers | +254 700 000 000 | Must be registered for M-Pesa; international transfers cannot reach unregistered numbers |
| Registered M-Pesa name | As on the recipient's ID | WANJIKU TEST KAMAU | Many services show it before you confirm; a mismatch means stop |
| Bank account | Account number, bank and branch | Length varies by bank | Best for amounts above KES 250,000 |
| PesaLink phone link | The phone number the recipient linked to their account | +254 100 000 000 | Works only if the recipient registered it with their bank |
| ID for cash at an agent | Kenyan national ID, Kenyan or foreign passport, military ID or foreigner certificate | Name must match the account | The agent checks it before paying out cash |
| Tracking number | Issued by your provider | Shown on your receipt | Quote it in any dispute |
Inside Kenya, Safaricom's Hakikisha prompt shows the registered name before an M-Pesa user confirms a payment, and many US services run a similar name check. If the name that comes back is not the person you expect, stop and confirm the number by phone.
How steady has the shilling been?
Very steady: after a record low of KSh 161.36 per dollar in January 2024, the shilling recovered to about KSh 129 by October 2024 and has barely moved since.
The CBK credits the recovery to monetary tightening and reforms to the interbank market, and its foreign exchange reserves reached $12.39 billion, about 5.3 months of import cover, by the end of 2025. The World Bank's reference rate was KES 129.20 in August 2025 and the CBK's rate was KES 129.95 on October 30, 2026, a change of well under 1% in 14 months.
For a sender, that stability means the provider's margin, not the timing, decides how many shillings arrive. A 2% markup on $500 costs about KES 1,300, more than three times what the rate's 14-month drift would have cost on the same amount.
Which taxes apply in Kenya and the US?
In Kenya, a 15% excise duty applies to money-transfer fees rather than to the amount sent, and family support is not taxed as the recipient's income.
- Excise duty. The Excise Duty Act charges 15% on fees for money transfer services by banks, money transfer agencies, other financial service providers, mobile network operators and payment service providers, with the fee as the taxable value. It falls on Kenyan providers' charges, such as M-Pesa fees, rather than on the fee your US provider charges.
- Income tax. Kenya taxes income that accrues in or is derived from Kenya, such as pay, business profits, rent and interest, and it has no gift tax. Money sent to support family is therefore not the recipient's income, though payment for work done in Kenya is.
- Diaspora accounts and property. Since July 1, 2026, the Finance Act 2026 has exempted non-residents opening accounts with investment banks and financial institutions from needing a KRA PIN. Non-residents earning rent from Kenyan property must register under a simplified framework and pay by the 20th of the following month, unless a resident agent withholds the tax.
From the US side, a cash-funded send attracts the federal remittance transfer tax: 1% of the amount sent, on transfers paid with cash, a money order, a cashier's check or a similar physical instrument (IRS, as of Nov 1, 2026). Transfers funded from a bank or other financial-institution account, or with a US-issued debit or credit card are exempt, and those are the usual ways to pay for an M-Pesa transfer; our explainer on the US remittance transfer tax covers the edge cases. US rules also entitle you to see the rate, fees and shillings delivered before paying, plus a cancellation period: 30 minutes after paying, for a full refund. If the money never arrives, you have 180 days from the date the receipt said the money would be available (Consumer Financial Protection Bureau, as of Nov 2, 2026) to report the error, as explained in remittance transfer rights.
When does Kenya receive the most money from abroad?
Not only in December: in 2025 the CBK's three biggest months were May, October and December, and August 2026 set a record of $451.8 million.
Inflows peaked at $440.1 million in May 2025, $438.8 million in October and $435.5 million in December. In 2026, March brought $450.3 million, then a record, before August beat it. The family calendar still adds pressure at predictable points:
- School fees. Schools are on their long holiday from October 26, 2026 to January 1, 2027, and the Ministry of Education has given Monday, January 4, 2027 as the reopening date for Term 1, though its full 2027 calendar was still awaited in early November. Fees fall due in the days before reopening, straight after Christmas.
- Holidays. Jamhuri Day falls on Saturday, December 12, 2026, Christmas Day on Friday, December 25 and Boxing Day on Saturday, December 26, followed by New Year's Day on Friday, January 1, 2027. Kenya's Public Holidays Act moves only Sunday holidays to the next weekday, so neither Saturday gains a substitute day off.
- Easter 2027. Good Friday is March 26 and Easter Monday is March 29.
M-Pesa and PesaLink keep running through all of these, but bank branches close, and a US transfer funded from a bank account still waits for a US business day.
North America's shrinking share of Kenya's diaspora inflows
Kenya received $5.04 billion in diaspora remittances in 2025 by the CBK's count, up from $4.95 billion in 2024, and North America sent $2.92 billion of it, or 58.0%. That share is falling fast. In the first nine months of 2026 total inflows were flat at $3.77 billion, but North American inflows dropped 11.2% to $1.95 billion, a 51.6% share against 58.1% a year earlier, and in September alone the share was 49.1%, down from 58.6%.
On the World Bank's balance-of-payments measure, Kenya's personal remittances were $5.11 billion in 2025, equal to 3.8% of GDP and more than three times the $1.57 billion of a decade earlier. Among sub-Saharan countries in the World Bank's latest data, only Nigeria and Ethiopia receive more.
Reversals, wrong numbers and M-Pesa scams
Most problems on this route involve a wrong number or a fake message, and speed matters in both cases:
- Wrong number. Between two M-Pesa users, the sender can forward the confirmation message to 456 within 24 hours to request a reversal, with up to three attempts, provided the recipient's balance still covers it. A credit from a US provider is not a payment between two M-Pesa users, so ask the provider to act instead; Safaricom's terms allow reversal of a payment made in manifest error or through fraud within a month, but only while the money remains in the wallet.
- Fake credit texts. A fraudster sends an SMS dressed up as an M-Pesa credit, then calls asking for the mistaken amount back. Safaricom's advice is to check the M-Pesa balance before sending anything back.
- PIN requests. No genuine caller needs an M-Pesa PIN, whether they claim to be from customer care, a bank or a transfer service.
- Relatives in trouble. A request for urgent money from a family member's hacked account or a new number should get a call-back on the number you already know.
The money transfer scams guide covers the patterns that target senders everywhere.
Figures here come from the Central Bank of Kenya, Safaricom, the Kenya Revenue Authority and the World Bank, checked under our editorial policy.