PayPal works in Kenya, but it's rarely the cheapest option. Most Kenyan freelancers and online sellers using PayPal are leaving 5-10% of their gross income on the table compared to alternatives. This guide is the honest comparison: six alternatives, what each one is best at, and where each one falls short.
1. Wise (formerly TransferWise), best all-rounder
What it is
Multi-currency account that gives you local bank details in USD (US ACH), GBP (UK Faster Payments), EUR (SEPA), AUD, and a few other currencies. Clients can pay you as if you were domestic in their country.
Fees
- Receiving in your local-currency account: free
- Currency conversion: 0.4-0.8% (real mid-market rate, no hidden margin)
- Withdrawal to Kenyan bank account: small fixed fee + the conversion margin
Best for
Freelance work for international clients. The structural cost saving versus PayPal is substantial, typically 5-8% on receive flows for amounts above USD 200.
Rough edges
Setup requires identity verification with documents. The Wise debit card is available in Kenya but with limited reach. Some clients still default to PayPal habit and need prompting.
2. Payoneer, best for Upwork, Fiverr, AdSense
What it is
Cross-border payment platform that's deeply integrated with major freelance marketplaces. Get paid by Upwork, Fiverr, Amazon, eBay, Airbnb, and others to your Payoneer account, then withdraw to a Kenyan bank.
Fees
- Receive from a marketplace: typically free or 1% (paid by the marketplace, often invisible to you)
- Withdraw to Kenyan bank: 2-3% + small currency-conversion fee
- Receive from another Payoneer user: free
Best for
Freelancers earning through Upwork, Fiverr, Toptal, Topcoder, Gengo, Trip.com, and similar platforms that natively support Payoneer payout. Often cheaper than the same platform's PayPal payout option.
Rough edges
Less useful for receiving direct invoice payments from non-platform clients. Not as widely accepted by SMEs and individuals as PayPal. Card-load fees on the Payoneer Mastercard.
3. Skrill, niche but useful
What it is
Digital wallet popular for online gaming, gambling, and casino withdrawals. Lower-friction for those use cases than PayPal, which has stricter gambling-related rules.
Fees
- Receive: free
- Send: 1.45% to other Skrill users; higher to bank
- Withdraw to Kenyan bank: mid-tier fees, varies by amount
Best for
Online gambling and casino flows where PayPal blocks transactions. Some forex brokers also accept Skrill deposits and withdrawals.
Rough edges
Limited acceptance outside niche use cases. Not a serious freelancer or e-commerce alternative.
4. Remitly, for diaspora remittances
What it is
Specialised remittance service. Diaspora Kenyans send money home; the recipient gets M-PESA, bank transfer, or cash pickup.
Fees
- Sender pays a small fixed fee + FX margin, typically 1-3% all-in for amounts under USD 500
- Recipient pays nothing
Best for
Receiving remittances from family in the US, UK, EU, UAE, Canada, Australia. Cheaper than Western Union; faster than bank wire; reaches M-PESA directly.
Rough edges
Not for commercial freelance income, designed for personal remittances.
5. WorldRemit, broad-corridor remittance
Similar profile to Remitly. Strong corridors from UK, EU, Australia, Middle East to Kenyan M-PESA. Slightly higher fees on average than Wise for similar amounts but more cash-pickup options globally.
6. Sendwave, fee-free remittance
Now Chime-owned, Sendwave often has the lowest fees on small remittance amounts (under USD/GBP 200). Fee-free promotional transfers run frequently, with a slightly wider FX margin. Strong corridors from US, UK, Canada to Kenya M-PESA. Best for small frequent family-support transfers.
Compared in detail in our Wise vs Sendwave guide.
When PayPal still wins
- The client insists on PayPal. Many international clients have PayPal set up in their accounting workflows and won't use anything else. PayPal's fee is then the cost of doing business.
- You're an e-commerce buyer. For paying online merchants in countries where PayPal is the default checkout option, alternatives don't cleanly replace PayPal.
- You need buyer protection on a purchase. PayPal's Buyer Protection is uniquely strong on disputes vs. cards or bank transfers.
- Sending to recipients without bank details. If your recipient only has an email address, PayPal works; Wise and Payoneer typically need bank details.
The combination most Kenyan freelancers should use
For working freelancers with international clients, the practical setup is:
- Wise as the primary receiving account (USD, GBP, EUR receiving details). Most clients can pay via local bank transfer to it.
- Payoneer for any earnings through Upwork, Fiverr, Toptal, AdSense (where these platforms natively support Payoneer better than PayPal).
- PayPal as a fallback for clients who insist or one-off invoices.
- Sendwave or Remitly for receiving family remittances.
- M-PESA as the daily-use wallet, funded from Wise/Payoneer withdrawals to your Kenyan bank, then bank-to-M-PESA pulls.
This combination typically saves Kenyan freelancers 5-10% in transaction costs compared to a PayPal-only setup, on a typical USD 1,000-3,000 monthly income.