Monday, 27 June 2016

What are the Challenges of Sending Money to Kenya Online?

Sending money online has made it convenient and fast for individuals to send money from any country to Kenya. While this avenue has made things easier even for emergencies, it comes with its own challenges. Kenya may have a great online platform and a wide population that is connected but the system does come with certain challenges when sending money to Kenya online. The major aspects to put into consideration will include transaction capabilities, costs, as well as trust.

Technological challenges

Sending money online to Kenya requires the use of technologically advanced equipment as well as the Internet which may at times experience hiccups. Such hiccups cause the money to arrive late or sometimes the transaction may be marked as sent whereas it did not send it. While there are ways to remedy such situations, they lead to inconvenience, frustrated clients and inefficiency in the delivery systems. 

Transaction costs

Every transaction that comes through will definitely incur certain costs depending on the amount you are sending, where you are sending it from, as well as the online platform you opt to use to send the money to Kenya. Using online money transfer platforms like KenyaPesa is meant to minimize costs and making the process convenient and fast for the client. However, the fees incurred on each transaction can make it expensive on the sender.

For individual who make frequent transactions may deem this costly but it will favor individuals who only have to make a few transactions once in a while.


The security of digital money is a major challenge. There are three major concerns in this category: Concerns have been raised over the possible manipulation of the value of e-money, protection against theft, as well as unlawful encounters. Though e-money security is achieved through encryption codes (cryptography), cases of hacking do occur at times. Even with automation, programmers still have to address hacking problems and even though measures are being put in place to address this issue, there is still much more that needs to be done.

Legality and competition of different currencies  

Money that is being transferred across one state to another has to be exchanged from one currency to another. Exchange rates cannot be standardized because they are governed by different legal entities. This has raised challenges as each currency is competing in the market to strengthen its value. The rise and fall of a given currency alters the costs of sending money to Kenya online. On the online platform, different currencies are exchanging hands and ensuring that every rate is ideal for the sender can be a challenge for the money transfer service provider.

The above challenges of sending money to Kenya online tend to cause delays or loss of money. Some are temporary whereas others are continuously being addressed in an effort to boost efficiency. Growth in the Kenyan economy and improved Internet and mobile connectivity platforms has helped address some of the above-mentioned challenges. There is room for improvement and this avenue is becoming a better choice for many Kenyans living abroad.