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1 Oct 2026
By RecruitFinds
Working for clients outside Kenya can open the door to better-paying freelance and remote opportunities, but getting paid is an important part of the equation. A freelancer may find a client in the United States, United Kingdom, Europe, Canada or another market and successfully complete the work, only to discover that the payment method affects how much money eventually reaches their Kenyan account.
For Kenyan freelancers, three options that often come up are Payoneer, Wise and direct transfers to M-Pesa through international money-transfer services.
These options do not work in exactly the same way. They can have different fees, exchange rates, processing times and withdrawal arrangements. The best choice can also depend on where your client is located, how frequently you receive payments and whether you need the money in a bank account or directly in your M-Pesa wallet.
There is also another issue freelancers should not overlook: taxation. Receiving money through Payoneer, Wise or M-Pesa does not automatically determine whether the income is taxable. The nature and source of the income and the applicable Kenyan tax rules matter.
Payoneer is widely used by freelancers, contractors and online workers who receive payments from international clients, marketplaces and businesses.
One of its advantages is that it is designed around cross-border business payments. Payoneer currently supports payments across more than 190 countries and territories and more than 70 currencies. Its fee structure depends on how the money is received and how it is withdrawn.
For example, Payoneer states that receiving money through a local-currency receiving account can be free, while receiving through a receiving account in a currency that is not the local currency can attract a fee. Payments made through some card-based methods can also have percentage-based charges.
This means freelancers should not look at only one advertised fee.
The real question is:
How much will I receive in Kenya after all applicable charges and currency conversion?
Payoneer allows users to withdraw money to bank accounts, including supported Kenyan bank accounts.
The company says withdrawals to a bank account in the same country and local currency can have a fixed fee in certain supported corridors, while other withdrawal and currency-conversion routes can have percentage-based fees. The exact fee depends on the account, currency and withdrawal route and is displayed before the transaction is confirmed.
This makes Payoneer particularly useful for freelancers who regularly receive international payments and prefer to move larger amounts into a bank account.
Another advantage is that you can sometimes hold funds before withdrawing them rather than converting immediately.
Wise takes a different approach to international payments.
Its major selling point is transparent pricing and currency conversion. Wise says it uses the mid-market exchange rate for currency conversion and displays the applicable fees before a transaction is completed.
For freelancers, this can make it easier to calculate the actual cost of converting foreign earnings.
Wise also provides account details for supported currencies and payment types, allowing eligible users to receive certain international payments into their Wise account.
However, receiving money is not necessarily free in every situation.
Wise states that most domestic payments are free to receive, while international SWIFT payments can attract fees. The sender's bank or correspondent banks can also impose charges in some circumstances.
Therefore, a freelancer should check the exact receiving method rather than assuming that every payment arriving in Wise will cost the same.
Exchange rates can make a significant difference to freelancers.
Suppose a client pays you USD 1,000.
You could compare the amount you receive in Kenyan shillings after conversion rather than simply comparing the headline transaction fee.
Provider A might advertise a low transfer fee but use a less favourable exchange rate.
Provider B might have a visible conversion fee but give you a rate closer to the mid-market rate.
The important figure is the final amount you receive.
For this reason, freelancers should check the conversion calculator immediately before making a large withdrawal or conversion because exchange rates and fees can change.
For many Kenyan freelancers, M-Pesa is attractive because the money arrives directly into a familiar mobile wallet.
Safaricom's M-Pesa Global service supports international money transfers and allows M-Pesa customers to receive money from abroad through supported remittance channels and partners. Safaricom says M-Pesa Global is designed to allow customers to send and receive money internationally.
This can remove an extra step.
Instead of receiving money into an international payment account and then transferring it to a Kenyan bank, the freelancer can receive supported international payments directly into M-Pesa.
However, "direct M-Pesa transfer" does not necessarily mean that every overseas client can simply send money from their normal bank account to your Kenyan M-Pesa number.
The availability of the service depends on the sending country, remittance provider and payment route.
Safaricom's M-Pesa Global terms explain that international remittance services operate in partnership with third-party international money-remittance providers, and those providers can have their own restrictions, fees and availability conditions.
Processing time depends on the payment method, sending country, banks involved, weekends, compliance checks and other factors.
Payoneer states that most withdrawals to local bank accounts typically reach the account within two business days after withdrawal, although actual timing can vary.
Wise can also be relatively fast, but the exact timing depends on the currency and payment method.
Direct international transfers into M-Pesa can be convenient because the money does not necessarily have to pass through your bank account first. However, the actual delivery time depends on the remittance provider used by the sender.
For an urgent payment, the freelancer should therefore ask the client which payment route they intend to use before giving payment instructions.
FeaturePayoneerWiseDirect M-PesaInternational paymentsYesYesYes, through supported remittance routesKenyan bank withdrawalYesDepends on available Wise features and routeCan transfer to bank separatelyDirect mobile-wallet receiptNot the main use caseNot the main use caseYes, through supported servicesCurrency conversionAvailableAvailableHandled through applicable remittance routeFee structureVaries by methodVaries by service and currencyDepends on provider/serviceBest suited toRegular international freelance paymentsTransparent international transfers/conversionConvenience and quick access to Kenyan fundsProcessing timeOften up to a few business days for bank withdrawalsDepends on payment routeDepends on remittance provider
The table should be treated as a general guide rather than a permanent fee schedule. Payment providers change their pricing and supported services, so freelancers should always check the current amount shown before confirming a transaction.
This is one of the most important things to understand.
Imagine a client sends you USD 500.
You might see an exchange rate of KSh 130 per dollar on a currency website. That does not automatically mean you will receive:
USD 500 × KSh 130 = KSh 65,000
The payment provider may use its own applicable conversion rate, deduct a transaction fee, or apply a currency-conversion charge.
The final amount could therefore be lower.
When comparing payment services, look at four figures:
Amount sent by the client.
Transaction or receiving fee.
Exchange rate applied.
Final amount received in Kenya.
That gives you a much more useful comparison than simply asking which service has the lowest fee.
Regardless of the payment method you choose, keep records.
Save:
Client invoices
Contracts or agreements
Payment confirmations
Payoneer statements
Wise statements
M-Pesa transaction messages
Bank statements
Records of applicable fees
Exchange-rate information used for your accounting
This becomes particularly important when preparing tax records.
It also helps you determine whether a particular client or payment platform is actually economical.
For example, if you receive ten small payments every month, transaction fees may have a larger effect than they would on one larger monthly payment.
Getting paid by an international client does not mean that the income automatically falls outside the Kenyan tax system.
KRA explains that Kenya generally operates a source-based tax system, but there are exceptions involving foreign income. KRA specifically states that foreign income can be taxable in Kenya in circumstances including employment income earned outside Kenya by a Kenyan resident and business income where a Kenyan person carries on business partly in Kenya and partly outside Kenya.
This is important for freelancers because the fact that your client is located in another country does not by itself answer the tax question.
Your actual circumstances matter.
A Kenyan freelancer carrying out their business from Kenya should therefore not assume that an overseas client automatically makes the earnings tax-free.
KRA states that individuals with a KRA PIN are required to file individual income tax returns annually, and returns are filed online through iTax. The normal filing period for an individual return is from 1 January to 30 June of the following year.
KRA also provides specific guidance on foreign income and states that where foreign income is taxable in Kenya, the applicable Kenyan tax rates for similar income apply.
For someone receiving freelance income, it is therefore important to keep proper records throughout the year rather than trying to reconstruct everything when the filing deadline approaches.
If you have complicated circumstances, such as income that has already been taxed in another country, multiple clients or a business operating across different countries, professional tax advice can help you determine the correct treatment.
KRA also notes that foreign tax paid may be eligible for relief in certain circumstances and that double-taxation agreements can affect foreign tax credits.
KRA specifically states that prevailing exchange rates at the time of payment are taken into account when determining taxable income from foreign income.
This makes record keeping especially important for freelancers paid in US dollars, pounds, euros or other currencies.
Do not simply write down an approximate exchange rate several months later.
Keep the payment record and the applicable conversion information available for your accounting records.
Imagine a Kenyan freelancer completes a project worth USD 1,000.
Instead of immediately choosing a payment service based on popularity, the freelancer could compare:
Payoneer
Check the receiving fee, applicable withdrawal fee, conversion rate and final amount that will reach the Kenyan bank account.
Wise
Check the receiving method, conversion fee, exchange rate and final amount available after conversion.
M-Pesa
Check whether the client's country and chosen remittance provider support direct M-Pesa delivery, then check the provider's exchange rate, transfer fee and final KSh amount.
The freelancer should then compare the final amount rather than just the advertised fee.
For example, a service charging KSh 500 but providing KSh 130,000 after conversion could be better for that transaction than a service advertising a smaller fee but delivering KSh 127,000 after its exchange rate and other charges.
The calculation should be based on actual figures displayed by the provider at the time.
Another mistake is looking only at the first payment.
Suppose your client pays you through an international platform and you then move the money to another account before finally sending it to M-Pesa.
You may end up paying for several stages:
Client → payment platform → bank → M-Pesa
Each additional conversion or transfer can introduce another charge.
If you already know that you need the money in M-Pesa for everyday expenses, a supported direct remittance route may be more convenient.
If you need to keep substantial business funds in a bank account, an international payment platform with bank withdrawal facilities may make more sense.
The cheapest-looking option is not automatically the most suitable.
Consider:
How much you receive each month
Your average payment size
Where your clients are located
Whether clients already use a particular payment method
How quickly you need the money
Whether you need a bank account or M-Pesa
The exchange rate offered
Withdrawal fees
Receiving fees
Documentation and payment records
Tax reporting requirements
A freelancer receiving USD 100 occasionally may have different priorities from someone receiving USD 5,000 every month.
Payoneer, Wise and direct M-Pesa transfers can all be useful ways for Kenyan freelancers to receive international earnings, but they serve different needs.
Payoneer is built strongly around international business and marketplace payments and offers withdrawals to supported Kenyan bank accounts. Wise focuses heavily on transparent international transfers and currency conversion, with fees that depend on the particular service and currency. M-Pesa offers the convenience of receiving supported international remittances directly into a Kenyan mobile wallet.
The most important comparison is not simply the advertised transaction fee.
Look at the complete journey of your money: how much the client sends, what the provider charges, which exchange rate is used, what you finally receive in Kenya and whether you need to pay another fee to move the money.
Finally, keep proper records and understand your Kenyan tax obligations. KRA's guidance confirms that some foreign income can be taxable in Kenya and that taxable foreign income must be handled through the applicable tax and filing processes.
For freelancers building an international career from Kenya, choosing a payment method is therefore not just about receiving money. It is about understanding the full cost of getting paid, maintaining reliable financial records and making sure your international earnings are handled properly once they reach Kenya.
