Kenya is East Africa's most connected economy, and for UK businesses, it represents a gateway that is growing harder to ignore.
Nairobi has emerged as the region's undisputed commercial capital: home to the African headquarters of Google, Microsoft, Visa, and over a hundred other multinationals. Kenya's technology sector, professional services industry, and agricultural export base have all drawn significant UK investment and commercial partnerships over the past decade. The UK-Kenya Economic Partnership Agreement, which came into force in 2021, has reinforced what was already a significant bilateral trade relationship.
Yet as these commercial ties deepen, one operational challenge remains consistent: getting money there efficiently, for businesses sending funds from GBP to Kenyan Shillings (KES), the combination of traditional banking infrastructure, Kenya's unique mobile money ecosystem, and multi-layered correspondent banking can turn what should be a straightforward payment into a process that is slower, costlier, and less transparent than it needs to be.
This guide is for UK businesses that are already working with Kenyan partners — or considering it — and want to understand how cross-border payments into Kenya actually work, what the friction points are, and what better infrastructure looks like.
Why UK Businesses Are Increasingly Working With Kenya
Understanding the payment challenge starts with understanding why the corridor matters.
Kenya is East Africa's economic hub. With a GDP of approximately $115 billion (2024 estimate), Kenya is the largest economy in East Africa and one of the fastest-growing on the continent. Nairobi functions as a regional headquarters city — the place where businesses establish their East African operations before expanding into Uganda, Tanzania, Rwanda, and Ethiopia. For UK companies entering the region, Kenya is almost always the first stop.
The UK-Kenya trade relationship is substantial and growing. The UK and Kenya are longstanding trading partners with deep historical and institutional ties. UK exports to Kenya include machinery, vehicles, pharmaceuticals, and financial services. Kenya exports to the UK include tea, cut flowers, fresh produce, and apparel. Bilateral trade between the two countries was valued at over £1.5 billion annually in recent years, with the UK-Kenya Economic Partnership Agreement creating frameworks for further expansion across goods and services.
Tech and BPO investment is accelerating. Nairobi's "Silicon Savannah" has become one of Africa's most recognised technology clusters. Kenya produces a growing supply of software engineers, data scientists, UX designers, and digital product teams. UK technology companies, startups, and digital agencies are increasingly tapping Kenyan talent — both through formal employment relationships with Kenyan entities and through direct contractor engagements.
Agriculture and supply chains run deep. Kenya is one of the world's largest exporters of cut flowers (the UK is among the top recipients), black tea, coffee, macadamia nuts, and fresh horticultural produce. UK food and beverage businesses, supermarket supply chains, and hospitality companies with sourcing operations in Kenya make regular payments to Kenyan suppliers, growers, and exporters.
Professional services are expanding. Law firms, consulting practices, accounting firms, and HR services in Kenya increasingly serve UK-headquartered clients. As remote work normalises cross-border professional relationships, the volume of recurring GBP-KES payments for ongoing service agreements continues to grow.
Kenya's Payment Landscape: What UK Businesses Need to Understand
Kenya has one of the most distinctive payment environments on the continent — and in the world. Before sending money to Kenya, it helps to understand how the financial infrastructure actually works.
M-Pesa dominates domestic transactions. Launched by Safaricom in 2007, M-Pesa is arguably the world's most successful mobile money platform. As of 2024, M-Pesa had over 30 million active users in Kenya and processed transactions equivalent to more than 50% of Kenya's GDP annually. For everyday payments between Kenyans, M-Pesa is often the default — not bank transfers. This means that for certain contractor or supplier types, particularly smaller businesses and sole traders, the expectation may be payment to an M-Pesa wallet rather than a traditional bank account. UK businesses should confirm their Kenyan partners' preferred payment method before establishing a payment workflow.
The formal banking sector is well-developed but layered. Kenya's banking sector is regulated by the Central Bank of Kenya (CBK) and includes major commercial banks such as Equity Bank, KCB Group, Co-operative Bank, NCBA, and Stanbic. For business-to-business international payments, most Kenyan companies receive funds via SWIFT wire to their commercial bank account in KES or USD. Kenya's Real Time Gross Settlement (RTGS) system handles high-value interbank transfers domestically, while the Pesalink platform enables account-to-account transfers across banks.
USD is widely used in Kenyan business. While the Kenyan Shilling is the domestic currency, many larger Kenyan businesses — particularly in export sectors and professional services — invoice and hold in US Dollars. UK businesses should confirm with each Kenyan partner whether they prefer to receive KES or USD, as this affects how you structure your payment and which exchange rate you manage.
The CBK monitors capital flows. Kenya has a relatively open capital account, but the Central Bank of Kenya monitors significant inflows and outflows. Businesses receiving large or regular international transfers may be asked by their Kenyan bank to demonstrate the purpose of funds — standard practice for compliance. Working with a regulated payment provider that produces clear, auditable transaction records makes this straightforward for your Kenyan partners.
What Makes GBP-KES Transfers Difficult for UK Businesses?
The UK-Kenya payment corridor carries specific friction points that businesses encounter repeatedly:
Correspondent banking chains add cost and time. GBP-to-KES transfers via traditional bank wire typically travel through one or more correspondent banks before reaching the recipient's Kenyan account. Each intermediary can apply fees, and the process adds settlement time — often three to five business days, sometimes longer.
Exchange rate transparency is limited. UK high street banks and many traditional providers apply a markup over the mid-market GBP-KES rate without disclosing it clearly. In 2025, the GBP-KES rate sat in the range of 170–180 KES per pound, meaning even a 1–2% undisclosed markup can represent a meaningful amount on larger supplier or contractor payments.
Currency volatility requires attention. The Kenyan Shilling has experienced periods of significant depreciation against major currencies in recent years — the KES weakened considerably against the USD and GBP through 2023 before stabilising in 2024 following IMF support and improved forex reserves. Businesses making recurring payments should consider how exchange rate movements affect the real value their Kenyan partners receive, and whether payment timing or forward planning is appropriate.
M-Pesa integration is non-trivial for international senders. While M-Pesa dominates domestic Kenyan payments, sending money directly to an M-Pesa wallet from a UK bank account is not straightforward. Most international transfer pathways deliver to bank accounts; businesses whose Kenyan contractors prefer M-Pesa will need to either use a provider with M-Pesa integration or ask the recipient to receive into a bank account and self-transfer.
Local banking infrastructure introduces delays. Even after an international transfer arrives at a Kenyan correspondent bank, the final leg into the recipient's account at a local Kenyan bank can take additional time, particularly around public holidays or during periods of high transaction volume.
How Can UK Businesses Pay in Kenyan Shillings (KES)?
The most efficient way for UK businesses to pay suppliers and contractors in Kenya is to send funds directly in Kenyan Shillings (KES) using a multi-currency cross-border payment platform that supports the GBP-KES corridor.
Direct KES payments mean the conversion is handled at the UK end, under conditions the business can see and control. The Kenyan recipient receives local currency into their account — no additional conversion charges, no uncertainty about what will arrive, and no reliance on the recipient's local bank to process an incoming USD or GBP transfer at an unfavourable rate.
For recurring payments — monthly supplier invoices, contractor salaries, ongoing service agreements — this consistency matters. Kenyan partners who know exactly what they will receive are easier to retain and easier to plan with.
Trying to pay suppliers, contractors, and business partners in Kenya should not slow down your operations. Whether you're expanding into East Africa, managing vendor relationships, or supporting remote teams, you need a payment partner that helps you move money across borders with confidence.
Leatherback gives UK businesses a simpler way to make GBP-KES transfers through direct local currency payouts, multi-currency accounts, real-time payment tracking, and a single platform for managing international payments across multiple markets.
From Nairobi's growing tech ecosystem to Kenya's thriving export and logistics sectors, Leatherback helps businesses pay faster, operate more efficiently, and stay focused on growth instead of payment administration.
Ready to simplify your payments to Kenya? Create a Leatherback business account today and start sending GBP-KES transfers with greater speed, visibility, and control.
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