In recent years, PayPal has become a popular online payment platform for people in Kenya.
However, while it offers a convenient way to make and receive payments, there are fees associated with using the service.
In this article, we will explore the different PayPal fees that users in Kenya can expect to encounter when using the platform, including transaction fees, currency conversion fees, and withdrawal fees.
We will also look at ways to minimize these fees and provide tips on how to make the most of your PayPal account in Kenya.
Whether you are a business owner or a freelancer, understanding PayPal fees is crucial to ensuring that you are getting the best value for your money.
How to create a PayPal account in Kenya
- Visit PayPal.com on computer.
- Choose account type (Personal or Business)
- Enter your personal information
- Activate the account via Email
- Link your debit card or credit card
- Use PayPal to send and receive the money within Kenya or anywhere around the world.
PayPal fees in Kenya
Below is a simplified table of PayPal fees in Kenya.
Transaction type
Charges
Opening a PayPal account
Free
Holding USD in PayPal account
Free
PayPal to PayPal transfers
Free
Link PayPal to M-PESA
Free
Fund transfer from PayPal account
5% of the amount (capped at $0.09 to $4.99)
Fund transfer from Bank card
2.9% of the amount (plus fixed fee based on currency)
Vendor payment request
2.4% to 5% (plus fixed $0.3 fee)
How to link PayPal to M-PESA
To link PayPal to M-PESA, you’ll need to follow these steps;
- Visit PayPal’s M-Pesa page; https://www.paypal-mobilemoney.com/m-pesa.
- Log into PayPal using your PayPal username and password
- Agree to PayPal’s terms and conditions for the service.
- Add the M-PESA number you want to link with PayPal
- PayPal will send an SMS verification code to your M-PESA number
- Key in the verification code PayPal sent you on your M-PESA account and complete the linking process.
- You have completed the process of linking PayPal to M-PESA.
How to withdraw money from PayPal to M-PESA?
To withdraw from PayPal to M-PESA, you’ll need to follow these steps;
- Go to https://www.paypal-mobilemoney.com/m-pesa
- Log in with your PayPal user details.
- Select Withdraw from PayPal
- The next screen will show you the available PayPal balance in your account.
- Enter the amount you would like to withdraw and click. Continue to Withdraw.
- They will send the money to your M-Pesa account in a few minutes.
FAQ
Are there any other fees associated with using PayPal in Kenya?
Yes, there may be additional fees associated with using PayPal in Kenya, such as currency conversion fees or withdrawal fees.
What is the currency conversion fee for PayPal in Kenya?
PayPal’s currency conversion fee for transactions in Kenya is 3.5% above the exchange rate for the currency being converted.
Is there a withdrawal fee for PayPal in Kenya?
Yes, there is a withdrawal fee for PayPal in Kenya. The fee is 1% of the withdrawal amount, with a minimum fee of KES 200 and a maximum fee of KES 7500.
Can I avoid PayPal fees in Kenya?
While it is not possible to avoid PayPal fees entirely, there are ways to minimize them.
For example, you can choose to receive payments in the same currency as your PayPal account to avoid currency conversion fees, or you can consider using other payment methods that may have lower fees.
How do I calculate PayPal fees for transactions in Kenya?
You can use PayPal’s fee calculator to determine the fees for a specific transaction. Simply enter the amount and currency of the transaction, and the calculator will display the fees associated with the transaction.
Are there any restrictions on using PayPal in Kenya?
Yes, there may be restrictions on using PayPal in Kenya. For example, PayPal may limit the amount of money you can send or receive, or it may require additional verification steps to comply with local regulations.
Can I use PayPal for international transactions in Kenya?
Yes, you can use PayPal for international transaction in Kenya. However, be aware that there may be additional fees and restrictions associated with international transactions.
How do I sign up for a PayPal account in Kenya?
To sign up for a PayPal account in Kenya, simply go to the PayPal website and click on the “Sign Up” button. You will need to provide your personal information and link a valid payment method to your account.
Conclusion
PayPal fees in Kenya have undergone changes in 2023, which may impact individuals and businesses using the payment service.
The new fees structure includes changes to withdrawal fees, currency conversion fees, and cross-border transaction fees, among others.
These changes may result in increased costs for some users, particularly those who frequently withdraw funds or make cross-border transactions.
However, the new fees structure also offers some benefits, such as lower fees for certain transaction types and increased transparency in fee calculations.