How to Send Money From Kenya to Nigeria

Sending money from Kenya to Nigeria is common due to growing economic ties and personal connections. Understanding available options and considerations is key for cross-border financial transactions. Modern financial technology offers efficient and accessible solutions, making it easier to choose the right method for your needs.

Available Money Transfer Methods

Several avenues exist for transferring funds from Kenya to Nigeria, each with distinct features regarding speed, cost, and convenience.

Online money transfer platforms are popular, offering digital, app-based services for quick transfers. Companies like WorldRemit, Remitly, Sendwave, and Wise allow users to send funds from mobile devices or computers, often with competitive exchange rates and generally lower fees compared to traditional banking options. These platforms typically support direct bank deposits, mobile money transfers, or cash pickup options in Nigeria.

Traditional bank transfers, or international wire transfers, are reliable but often have higher fees and longer processing times, typically 3 to 5 business days. While generally secure, their exchange rates may not always be as favorable as those found on specialized online platforms.

Mobile money services are significant for cross-border payments in Africa. M-Pesa, widely used in Kenya, allows international transfers to Nigeria, often through partnerships. While direct M-Pesa to M-Pesa transfers may have daily caps (e.g., KES 70,000), they offer a convenient mobile option. Other mobile money operators like MTN MoMo also facilitate international transfers, enabling customers to send and receive money across African countries.

For physical transactions, cash pickup services like Western Union and MoneyGram are available. Senders in Kenya pay in cash, and recipients in Nigeria collect funds from an agent location. Western Union, for example, offers a maximum transfer fee of KES 500 for cash pickups to Nigeria.

Information and Documents Required

Sending money from Kenya to Nigeria requires specific information and documentation from both sender and recipient to comply with financial regulations. Senders typically need a valid ID (national ID or passport). Proof of address may also be requested, and for larger transactions, the source of funds might need to be verified to comply with anti-money laundering (AML) regulations.

Recipient information is equally important. This includes their full legal name, matching their identification, a physical address, and a contact phone number.

Additional details depend on the transfer method. For bank deposits, the recipient’s bank name, account number, and sometimes a SWIFT/BIC code are essential. For mobile money, the recipient’s mobile money account number or phone number linked to their wallet is needed. Cash pickup services require a reference number or transaction code and the recipient’s valid identification.

Understanding Transfer Costs and Exchange Rates

International money transfers involve transfer fees and the exchange rate. Fees vary by provider, structured as a flat fee, a percentage, or a combination. Online platforms might charge 0.1% to 2.6%, while banks could charge 1% to 3%. Some services, like Western Union, cap fees for certain transfers, such as KES 500 for cash pickup to Nigeria.

The exchange rate determines how much Nigerian Naira the recipient receives. Financial services often use a marked-up exchange rate, adding a margin to the mid-market rate. The mid-market rate is the “real” exchange rate, the midpoint between buying and selling prices. Service providers incorporate their profit margins into the exchange rate they display to customers.

To calculate the true cost, consider both explicit transfer fees and hidden costs within the exchange rate markup. Compare the final amount the recipient will receive across different services, rather than just focusing on low fees. Many platforms offer transparent pricing, displaying the exact exchange rate and all applicable fees upfront.

Executing the Transfer

After selecting a transfer method and gathering information, executing the transfer involves general steps. The process begins by accessing the chosen service via mobile app, website, or physical agent. After logging in or creating an account, the sender initiates a new transfer.

Next, input transaction details: amount to send and recipient’s information (full name, bank account, or mobile money details). Carefully review all entered details to prevent errors. The service will then display the total cost, including fees and the exchange rate, along with the exact amount the recipient will receive in Nigerian Naira.

Payment for the transfer can be made using various methods available in Kenya. Common options include funding the transfer directly from a Kenyan bank account, using a debit or credit card, or utilizing mobile money services like M-Pesa. After confirming details and submitting payment, the sender receives a confirmation and a tracking number (e.g., MTCN for Western Union). This number allows both sender and recipient to monitor the transfer status.

Upon successful processing, the recipient in Nigeria collects funds via the chosen payout method: direct deposit, mobile money wallet credit, or cash pickup at an agent location with identification and the reference number. Some services offer instant transfers, while others may take minutes, hours, or a few business days for bank transfers.