Deposits and withdrawals with local methods
What you learn in 3 minutesThis lesson shows how money moves between a Kenyan bank or phone and a broker account, and what each leg costs in KSh. You will compare two cases: a deposit and withdrawal done in the right order, and the same amounts done in the wrong order, where fees and delays add up. By the end you can work out the shilling cost of a payment method before you use it.
Two cases: KSh 50,000 in and KSh 50,000 out
| Step | Amount | Note |
|---|---|---|
| Deposit amount | KSh 50,000 | the amount sent from M-Pesa or bank transfer |
| Deposit fee | KSh 0 to KSh 150 | varies by method and provider; M-Pesa and bank transfer differ |
| Time for deposit to reach the broker | minutes to 1 business day | M-Pesa is usually faster than bank transfer |
| Conversion to account currency | at the broker's rate | the broker converts KES to the account currency; the rate varies |
| Withdrawal fee | KSh 0 to KSh 200 | varies by broker and method; some brokers charge none |
| Time for withdrawal to reach you | 1 to 5 business days | the return leg is often slower than the deposit leg |
| One pip on one standard lot of EUR/USD | 10 units of the quote currency | 100,000 x 0.0001, converted at the current rate |
The broker may round the conversion rate, charge a separate conversion spread, or quote a different fee for each method. Check the fee schedule before sending money.
The mistake people make here
The common mistake is depositing with one method and trying to withdraw to a different one, for example funding by bank transfer and asking for M-Pesa. Most brokers return funds by the same route as the deposit, so the withdrawal is delayed or refused. Another mistake is ignoring the conversion cost: KES goes in, the account may hold another currency, and the broker's rate is not the same as the rate you see on a news site. Before sending anything, confirm the deposit method, the withdrawal method, and the conversion rate in writing.Check yourself
You deposit KSh 20,000 by M-Pesa with a fee of KSh 100. How much reaches the broker before conversion?
KSh 20,000 minus KSh 100 equals KSh 19,900.
One pip on one standard lot of EUR/USD is 10 units of the quote currency. If the quote currency is converted at 130 KSh per unit, what is one pip in KSh?
10 units x 130 KSh = KSh 1,300 per pip.
In Kenya
- Money
- shilling, written KSh (KES)
- Regulator
- CMA
- Payment methods
- M-Pesa and bank transfer
- Instrument used in examples
- EUR/USD, around 1.0850
- Withdrawal rule
- funds usually return by the same method used to deposit