Expat Money Transfers – sending money to Kenya

I can’t begin to count how much money I’ve lost transferring salaries between the UK, South Africa and Kenya over the years. From dollars to pounds to shilling to the rand – sometimes back and forth within the same month. Expat money transfers are a common and necessary evil. If you are like me and use your bank to send money to families and friends overseas, then you probably suffered steep fees and unfavourable exchange rates too.

Transferring expat money can be costly and cumbersome. I did a bit of research to work out the cheapest and most effective money transfers for expats globally, and I thought I’d share them with you. I’d start by clicking here to compare international money transfers, it is a one-stop shop that helps you to navigate the minefield of varying exchange charts and provider fees. 

---

UK banks – standard charges and fees for sending expat money. 

Nearly every UK bank charges a fixed amount known as transfer fees for every transaction. For example, a bank like Barclays will charge £25 for each international transfer. If that money is intended for a US account, as I have in Kenya, the recipient will have to shell out a receiving fee of $15 for the transfer to go through. These fees are over and above any intermediate charges the bank may levy before the money reaches the account of the beneficiary.

---

---

Banks hidden fee’s for sending expat money

There are a number of hidden fees in the exchange rate transfer margin charged by banks. This is essentially the difference between the market rate and the bank rate. For example, if you are converting USD to KSH at the rate of 1.09 and the market rate is 1.07, then the difference between the two, in percentage terms, comes to 2.00%. This means for every 100 USD transferred you are charged 2.00 USD as margin money. If you are sending a large amount this margin can grow very quickly.

---

---

Individual UK banks sending fees

HSBC – If you want to transfer money to Kenya, you can use the Digital Secure Key mobile platform by HSBC, go online or visit a branch. Online HSBC will charge £4, whereas via a branch they charge £9. Some banks if countries may charge you again to receive your transfer, which will have to be paid by the recipient. 

Barclays Bank UK levies a fee of £25 on every international payment made through phone or any of their local branches. Again, depending upon the arrangements with the holding bank, the recipient will have to pay a fee of about 2.75% to get the money.

If you turn to NatWest to do your transfer, then apart from the bank fees (which can be high as £10), you will have to pay a fixed amount of £22 which is still better than other banks. The drawback is the 4% margin they keep.

Lloyds Bank permits a transfer of £100000 per day. For this to reach a Kenyan Bank the bank will charge transfer charges of £9.50 plus bank fees of £20. 

---

---

US banks – fees and charges 

Sending wire transfers in the US can be an expensive way to move expat money overseas, but there are banks that give good service for a reasonable fee. How much they charge and what to expect is outlined below:

●     Citibank: At $35 per transfer, they have the lowest rates.

●     Chase Manhattan: $50 per transfer

●     Bank of America: $45 per transfer

●     Wells Fargo: $45 per transfer.

These outbound wire transfer fees are excluding the exchange rates charged by the banks. Fees you can expect for an international wire transfer:

●     Bank sending fee: This is a fixed fee depending upon on the type of account you hold and how you make the transfer.

●     Exchange rate margin fee:  Often between 2-4% the US banks have the worst rate.

●     Corresponding bank fee: Additional fee charged by the corresponding banks.

●     Receiving bank fee: To be paid by the beneficiary on getting the money, unless desired otherwise by the sender.

---

Foreign exchange companies 

These days international money transfers are being challenged by specialized foreign exchange companies that offer online international money transfers at cheaper and convenient rates than traditional banks. You can use the Monito online comparison tool to find the cheapest option for your money transfer.

---

---

The best options for sending your expat money in and out of Kenya

There are several good agents for sending expat money to Kenya depending on certain conditions from the US & UK.

• ● World Remit & Transfast: (For sending under $200 or equivalent)
• ● OFX
• ● TorFX
• ● Currencies Direct
• ● Global Reach
• ● Currency Solutions
• ● Azimo
• ● Transfer Wise
• ● Remitly

In conclusion, it’s nearly always cheaper to use an online foreign exchange company for sending your expat money to and from Kenya, wherever are you from in the world. Use a money comparison site to pick the best one and watch out for hidden fee’s.  There you go – you owe me a beer .

---

Sharing is caring!