Paying in Kenya: PesaLink, M-Pesa and Kenyan shilling payouts
In Kenya, money moves between banks on PesaLink and between people on M-Pesa. For companies paying Kenyan teams, both matter. Here is how they work.
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Nairobi is one of Africa's main tech hubs, and many companies abroad have developers, designers, support agents or partners in Kenya. Kenya's payment system is unusual: banks and mobile money both matter, and many people use M-Pesa as their main account.
The rails
| Rail | Run by | Timing | Used for |
|---|---|---|---|
| PesaLink | Integrated Payment Services (Kenya Bankers Association) | Instant, 24/7 | Interbank transfers |
| KEPSS (RTGS) | Central Bank of Kenya | Real-time, business hours | Large-value payments |
| EFT | Banks | 1 to 2 days | Batch payments |
| M-Pesa | Safaricom | Instant | Mobile money, paying individuals and small businesses |
Bank account or M-Pesa?
| Bank account | M-Pesa | |
|---|---|---|
| Details needed | Bank, branch, account number, name | Phone number and registered name |
| Best for | Suppliers, larger contractor payments | Individual contractors, small suppliers |
| Limits | Bank limits | Per-transaction and daily limits set by Safaricom |
Confirm the registered name on any M-Pesa number before the first payment.
Paying Kenyan contractors from abroad
- A contract and an invoice for each payment. See how to pay international contractors.
- For a US company, a W-8BEN on file.
- Ask whether the contractor wants USD in a dollar account, KES to their bank, or KES to M-Pesa.
- Record the USD amount on the day you paid.
The domiciliary and USD account guide covers dollar accounts at Kenyan banks, and bulk payments covers paying a team in one run.
Paying Kenyan suppliers
Kenyan suppliers usually invoice in KES or USD. Paying KES invoices from a USD balance converts once, at a rate you see before sending, and the payment arrives on PesaLink in seconds where supported.
KES on Rivet
Rivet lets a company pay Kenyan accounts in shillings from its USD balance, with the rate and fee shown before you confirm. On Scale, a company can also hold and convert KES beside its other balances. See Payouts and Pricing.
Questions people ask
What is PesaLink?
Kenya's real-time interbank payment service, operated by Integrated Payment Services Limited, owned by the Kenya Bankers Association. It moves shillings between participating banks instantly, 24/7.
Can a business pay contractors to M-Pesa?
Yes, through providers that support mobile money payouts in Kenya. Many contractors prefer it because the money is spendable immediately. Confirm the registered name on the M-Pesa number before the first payment.
Should I pay a Kenyan contractor in USD or KES?
Ask them. Some hold USD accounts at Kenyan banks and prefer dollars. Others want shillings in their bank or M-Pesa. A KES payout converts once, at a rate you see, and avoids their bank converting a USD wire.
What is KEPSS?
The Kenya Electronic Payment and Settlement System, the Central Bank of Kenya's real-time gross settlement system for large-value and time-critical payments between banks.
Sources
William covers what happens once a company starts moving money: getting the business verified, paying contractors and suppliers abroad, and keeping card spend under control. William writes for the founder or finance lead who has to make it work this week, and links every rule cited to the text it comes from.
More from William Sunjo M. →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.
- kes payments
- pesalink
- m-pesa business
- pay contractors in kenya
- kenyan shilling
