How to Pay Freelancers and Remote Workers in Kenya

Kenya has a growing remote work population. Whether you're hiring a Kenyan developer, designer, writer, or virtual assistant, here's how to pay them efficiently.

Understanding the Kenyan Freelance Market

Common Freelance Services from Kenya

• Software development
• Graphic design
• Content writing
• Virtual assistance
• Customer support
• Data entry
• Digital marketing

Typical Payment Amounts

Best Payment Methods for Freelancers

1. Wise (Recommended)

Why It's Best:

• Lowest fees (0.5-1%)
• Mid-market exchange rate
• Direct to Kenyan bank account
• Fast (1-2 days)

Cost Example ($1,000 payment):

• Fee: ~$8
• Recipient gets: ~KES 127,000

How to Pay:

1. Create Wise account
2. Add freelancer's bank details
3. Send payment
4. They receive in local account

2. PayPal

Pros:

• Instant delivery
• Familiar platform
• Invoice integration

Cons:

• High fees (4-5% total)
• Freelancer loses more on withdrawal

Cost Example ($1,000 payment):

• Your fee: ~$40
• Freelancer's withdrawal fee: ~$30
• Total cost: ~$70

3. Payoneer

Pros:

• Popular with freelancers
• Multiple withdrawal options
• Good for regular payments

Cons:

• Setup takes time
• Withdrawal fees apply

4. Direct Bank Transfer

Pros:

• Simple for one-time payments
• No platform fees

Cons:

• Slow (3-5 days)
• Poor exchange rates
• High wire fees

Cost Comparison: Paying $1,000 to Kenyan Freelancer

Wise saves your freelancer ~$60-125 per $1,000 payment.

Setting Up Regular Payments

For Monthly Freelancers

1. Agree on currency: USD or KES amount
2. Choose payment date: Same day each month
3. Set up recurring in Wise
4. Send payment confirmation each time

For Project-Based Work

1. Agree on milestones
2. Pay upon completion
3. Keep invoice records

Tax and Legal Considerations

For You (Employer/Client)

• 1099 reporting (US)
• No employment taxes
• Keep contracts and invoices
• May need withholding depending on services

For Kenyan Freelancer

• They handle their own taxes
• KRA registration if earning over threshold
• May request withholding certificate

Best Practices

• Written contract for all work
• Clear payment terms
• Invoice for each payment
• Keep records for tax purposes

Platforms with Kenyan Freelancers

Freelance Marketplaces

• Upwork: Large pool, escrow protection
• Fiverr: Good for small projects
• Toptal: Vetted developers

Direct Hiring

• LinkedIn
• Developer communities
• Referrals

Communication About Payment

What to Discuss Upfront

1. Payment amount and currency
2. Payment method preference
3. Payment schedule
4. Invoice requirements

Sample Payment Agreement

```

Payment Terms:

• Amount: $1,000 USD/month
• Method: Wise transfer
• Schedule: 1st of each month
• Currency conversion: At time of transfer
• Recipient: [Name]
• Bank: [Bank name and details]

```

Common Issues and Solutions

Issue: Freelancer Prefers PayPal

Solution: Explain cost difference. Offer to split the savings if they switch to Wise.

Issue: Bank Details Incorrect

Solution: Always verify with test payment for new freelancers. Start small.

Issue: Exchange Rate Complaints

Solution: Agree on fixed USD amount. Use mid-market rate (Wise provides this).

Tips for Long-Term Relationships

1. Pay on time, every time
2. Use same method consistently
3. Communicate payment confirmations
4. Review rates periodically
5. Build trust with reliable payments

Conclusion

Paying Kenyan freelancers efficiently:

1. Use Wise for lowest cost
2. Avoid PayPal if possible (high fees)
3. Pay consistently on same schedule
4. Document everything for taxes
5. Communicate clearly about payment terms

Your freelancer keeps more money, making them more motivated to do great work.

Compare freelancer payment options with our calculator.