Source: https://rivet.global/blog/pay-contractors-in-kenya-from-us
Published: 2026-09-13 · Updated: 2026-09-13 · By Alexia M.

# How to pay contractors in Kenya from the US

Paying Kenyan contractors from a US company: KES to a bank or M-Pesa, PesaLink, USD wires, what contractors need for KRA and W-8BEN.

## Key takeaways

- Kenyan contractors can receive KES into bank accounts, or into M-Pesa through providers that support mobile money payouts.
- PesaLink moves money between Kenyan banks in real time.
- A USD wire to a Kenyan bank is converted at the bank's rate unless the contractor holds a USD account.
- Collect a W-8BEN and pay against invoices.

Kenya's developer, design and support talent works with many US companies. Contractors there choose between bank accounts and M-Pesa, and paying in shillings locally usually leaves them with more.

## Routes

| Route | Notes |
|---|---|
| USD wire to a Kenyan bank | Converted at the bank's rate, or credited to a USD account |
| KES bank payout | Local transfer, often via PesaLink or RTGS |
| KES to M-Pesa | Mobile money payout; wallet limits apply |

## What the contractor needs

- Account or M-Pesa details in their own name.
- An invoice and payment record for KRA.

## Your side

- W-8BEN.
- Payment references that match invoices.

## A monthly run, step by step

1. On the first payment, collect the W-8BEN and the contractor's bank or M-Pesa details, and confirm the name matches their ID.
2. Each month, receive their invoice in USD or KES, with the period and amount.
3. Pay on a fixed date, with the invoice number as the reference.
4. Send them the payment receipt so they can match it in their KRA records.

If you pay several Kenyan contractors, a single bulk file saves time and keeps every payment on one statement.

## Paying into the United States: the local rail

| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |

Source: [Nacha: Same Day ACH](https://www.nacha.org/rules/same-day-ach-moving-payments-faster). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet pays contractors in Kenya and 120+ other countries from your USD balance, in local currency on local rails where available, with fee and FX shown before you confirm. Rivet is not a bank; regulated partner institutions hold the funds. See [KES business payments](/blog/kes-business-payments) and [M-Pesa Paybill vs Till](/blog/mpesa-paybill-vs-till).

## Questions

### Can I pay a Kenyan contractor to M-Pesa?

Yes, through providers that offer mobile money payouts. Check limits, since M-Pesa wallets have transaction and balance caps.

### Should I pay in USD or KES?

Ask the contractor. Many hold KES accounts; some keep USD accounts for savings.

### What does the contractor need for tax?

Kenyan residents declare foreign income to KRA. Invoices and payment records help them.

### Do I withhold US tax?

Not for non-US persons working entirely outside the US. Collect a W-8BEN.