How to Receive Payments via Payoneer and Mpesa in Kenya Free Guide

Freelancing in Africa has become a major source of income for writers, developers, designers, and virtual assistants.

While finding clients on platforms like Upwork or Fiverr is easier today, many freelancers still struggle with one big issue: how to receive freelance payments in Kenya.

The problem? Payoneer doesn’t currently offer a direct Payoneer to Mpesa withdrawal option. However, there is a practical way around this: withdrawing from Payoneer to a Kenyan bank, and then moving the funds to Mpesa.

This guide explains in detail how Kenyan freelancers can receive payments via Payoneer and Mpesa together, the steps involved, Payoneer fees, the timelines, and why this method is often cheaper and more reliable than PayPal.

Why Kenyan Freelancers Prefer Payoneer

Most international clients pay using bank transfers, PayPal, or Payoneer, but the reality is that Kenyan freelancers rely heavily on Mpesa to access their money quickly.

While PayPal and Mpesa are still widely used, Payoneer is increasingly popular among freelancers in Kenya. Here’s why:

• Supports major freelance platforms – Upwork, Fiverr, Toptal, and Freelancer.com allow direct withdrawal to Payoneer.
• Multiple currency accounts – Payoneer gives you USD, EUR, and GBP receiving accounts, making it easy to accept payments from global clients.
• Lower fees – Compared to PayPal, Payoneer withdrawal charges are lower and come with better exchange rates.
• Professional payments – Clients abroad see Payoneer as a proper financial network, making it easier to build trust.

The main drawback is that Payoneer cannot send money directly to Mpesa. Instead, freelancers must withdraw money into a Kenyan bank account, then move it to Mpesa through mobile banking.

How to Receive Payments via Payoneer to Mpesa

Since there is no direct Payoneer Mpesa integration, freelancers must use their Kenyan bank as a bridge. Here’s how it works:

Step 1: Open and Verify a Payoneer Account

1. Visit the Payoneer website and create an account.
2. Provide your Kenyan ID or passport for verification.
3. Add your Kenyan bank account details (Equity, Co-op, KCB, Absa, or Standard Chartered).
4. Wait for Payoneer to approve your account and link your bank.

This setup allows you to withdraw money from Payoneer wallet to your Kenyan bank in KES, USD, or EUR, depending on your account type.

Step 2: Receive Payments in Payoneer

Once your Payoneer account is ready, link Payoneer to your freelance platform (e.g., Upwork, Fiverr) or, send your Payoneer receiving account details to your direct clients so they can wire money to you.

Funds will appear in your Payoneer wallet once processed. Most freelancing platforms release Payoneer payments instantly, while direct bank transfers can take 1–3 days.

Step 3: Withdraw Funds from Payoneer to Your Kenyan Bank

This is the most important step.

Log into your Payoneer account, select Withdraw → To Bank Account, choose your linked Kenyan bank. enter the amount you want to withdraw, and confirm the withdrawal.

Funds usually take 2–3 business days to reflect in your Kenyan bank account. Some banks process faster than others.

Step 4: Move Money from Your Bank to Mpesa

Once the Payoneer funds are in your Kenyan bank, you can transfer to Mpesa. Most Kenyan banks come with digital mobile apps which make this process easier.

Using your bank’s mobile app (e.g., Equity Mobile, Co-op App, KCB App, Absa App), select Send to Mpesa or Withdraw to Mobile, enter your Mpesa number and the amount.and confirm,

Mpesa withdrawals often reflect instantly in your Mpesa wallet.This final step ensures you can use your freelance income immediately for bills, investments, or savings.

Payoneer Fees vs PayPal Fees for Kenyan Freelancers

From the table, it’s clear that Payoneer is cheaper for large withdrawals, while PayPal to Mpesa is faster for small amounts. Many freelancers in Kenya use both methods, depending on the type of project and payment size.

Which Banks Work Best for Payoneer Withdrawals in Kenya?

Not all banks handle Payoneer withdrawals equally well. Based on freelancer experiences, the top choices are:

• Equity Bank – Most popular, fast Payoneer processing, and easy transfer to Mpesa.
• Co-op Bank – Reliable for Payoneer, supports 24/7 mobile transfers to Mpesa.
• KCB Bank – Good exchange rates and smooth Payoneer integration.
• Absa Bank – Efficient transfers, though sometimes slightly slower.

Equity and Co-op are generally the best for freelancers because they also support USD accounts, meaning you can hold dollars and decide when to convert.

Mpesa Options for Freelancers

While Payoneer is ideal for bigger contracts, some freelancers still prefer direct Mpesa withdrawals. The most common methods include:

• PayPal to Mpesa: Best for small payments under $200. Instant transfers, but fees are higher.
• Western Union to Mpesa: Clients abroad can send money directly to your phone.
• WorldRemit, Wise, and Remitly: Perfect for direct international contracts without freelancing platforms.

These are convenient but less cost-effective than Payoneer when handling large freelance contracts.

Which Payment Method Should Freelancers in Kenya Use?

If you’re a beginner freelancer handling small jobs on Fiverr or through social media, PayPal to Mpesa is the easiest payment method for you to use.

If you’re a professional freelancer receiving $500+ per payment from Upwork, Fiverr, or direct clients, Payoneer–Bank–Mpesa is the most cost-effective

For long-term freelancing success, it’s best to have both Payoneer and PayPal accounts, plus a local bank account connected to Mpesa. This way, you always have multiple options depending on the client’s preferred payment method.

Conclusion

For Kenyan freelancers, the best way to receive payments depends on the size of the contract and the client’s preferred method.

While Mpesa and PayPal are great for small, quick payments, Payoneer combined with a Kenyan bank and Mpesa is the smartest way to receive freelance payments for larger amounts.

By mastering both methods, freelancers in Kenya can reduce fees, get paid faster, and have reliable access to their hard-earned income.