Kenyan companies receiving dollars from foreign clients
Nairobi's tech, consulting and creative firms bill clients in the US and Europe. Kenya lets companies hold dollars freely, so the questions are practical: how the client sends the money, how long it takes, and when to turn it into shillings.
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A Nairobi product design studio works for a US health startup and a London agency. Its US client wires dollars to its Kenyan bank, which takes three to five days. Its UK client pays pounds, converted on arrival. Staff are paid in shillings, some through M-Pesa, at month end.
A liberal regime
Kenya has had a liberal foreign exchange regime since the 1990s. Companies can hold dollar, euro and pound accounts at Kenyan banks and receive payments from abroad without special approvals.
The client side
The friction is on the way in. International wires to Kenyan banks pass through correspondent banks. US clients often batch foreign wires. UK clients convert pounds to dollars or send pounds that your bank converts.
Giving clients local details in their own country lets them pay domestically: ACH for US clients, Faster Payments for UK clients, SEPA for EU clients.
Converting to shillings
Hold foreign currency as it arrives. Convert a planned amount a few days before payroll. The shilling has moved significantly at times against the dollar, and planned conversions keep the budget steady.
VAT
Exports of services can be zero-rated under Kenya's VAT Act when the conditions are met. Keep contracts and evidence that services are used outside Kenya.
Paying into Kenya: the local rail
| What | Detail |
|---|---|
| Local rail | Pesalink |
| Run by | Integrated Payment Services Limited, owned by the Kenya Bankers Association |
| Settlement | Seconds, 24/7, up to KES 999,999 per transfer |
M-Pesa carries most small-value business receipts; Pesalink links bank accounts.
Source: Pesalink. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
A Rivet business account accepts registered companies after verification, including Kenyan companies. Approved companies get US account details in their own name on every plan, sterling and euro details from the Growth plan, and payouts in 120+ countries, including to Kenyan bank accounts and mobile money where available. Rivet is not a bank; regulated partner institutions hold the funds.
See the KES business payments guide and eTIMS expense deductions.
Questions people ask
Can Kenyan companies hold dollars?
Yes. Kenya does not restrict companies from holding foreign currency accounts or receiving payments from abroad.
Do Kenyan companies charge VAT to foreign clients?
Exports of services can be zero-rated when the conditions in the VAT Act are met. Check the current rules with your accountant.
Why do foreign payments take days?
International wires pass through correspondent banks and are processed by your bank on arrival.
How should payroll conversions be timed?
Convert a planned amount a few days before payroll, rather than converting each payment on arrival.
Sources
Rashidatou writes Rivet's guides to how money moves between countries: the payment rails, what each one costs, and the account details a company needs to get paid in another currency. Every figure in Rashidatou's articles is traced to the scheme rulebook, the regulator or the provider's published price list, and those sources are listed at the end.
More from Rashidatou K. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- kenya
- usd
- kes
- foreign clients
- m-pesa
- payroll
