To pay a USD invoice from Kenya, give your bank or provider the supplier's bank details and the invoice. Add a payment purpose. Above USD 10,000, the bank keeps supporting documents. Withhold tax first on most service invoices. Then choose who pays the charges and put the invoice number in the reference.
General information, not legal or tax advice. Rules are dated below. Check them with your bank and your tax adviser before you pay.
What does your bank need to send a USD payment?
Kenya has had no exchange control since 27 December 1995. A business can buy dollars and pay a foreign supplier. The payment must still go through an authorised bank or microfinance bank. The Central Bank of Kenya (CBK) can permit otherwise. That rule sits in section 33H of the CBK Act, as in force on 24 July 2026.
KCB's guide to online SWIFT transfers lists what a business fills in:
- Your details. Name, address, incorporation number and date of incorporation.
- The supplier. Legal name, address and account number or IBAN.
- The supplier's bank. Its SWIFT or BIC code.
- The payment. Amount and currency, payment purpose, a reference and who bears the charges.
Ask the supplier for its bank details in writing, on the invoice. Confirm any change of bank details by phone, on a number you already hold.
Kenya's anti-money laundering rules of 2023 also set what travels with every wire. Regulation 32 requires your name and account number. It also requires your address, an ID number, or a date and place of birth. The supplier's name and account number must travel too.
Which documents does the bank keep above USD 10,000?
Above USD 10,000 or its equivalent, your bank must obtain and keep documents. The rule comes from the CBK Guidelines on Foreign Exchange of September 2002. The CBK still lists them among its current guidelines. KCB, Co-operative Bank and Standard Chartered Kenya all state the USD 10,000 line on their own pages.
The documents depend on what the invoice pays for.
| What you pay for | Main documents the bank keeps (CBK guidelines, 2002) |
|---|---|
| Goods already landed in Kenya | Import Declaration Form (IDF), bill of lading or other transport document, original invoice, customs entry |
| Goods paid in advance | Your undertaking to send the shipping documents right after shipment |
| Management consultancy fees | The agreement, the invoice, proof of withholding tax paid |
| Technical fees | The agreement, the invoice, approval from the Kenya Industrial Property Office (KIPO), proof of withholding tax paid |
| Royalties | The licence agreement, KIPO approval, the licensor's invoice |
The 2002 text names KIPO. The office is now the Kenya Industrial Property Institute (KIPI).
On online banking, a bank may accept a signed declaration instead. You then promise to produce the documents on demand. Do not split one invoice into smaller payments to stay under USD 10,000. A CBK reporting form tells bureaus to check for exactly that.
For goods, the IDF also costs money. As at 1 July 2026, the import declaration fee is 2.5% of the customs value. You pay it when the goods enter Kenya for home use. KenTrade's 2020 service charter says the IDF is lodged through Kenya TradeNet. From 1 September 2026, importers must also keep an export declaration from the country of export. For a full country table, see how to pay Chinese suppliers from Africa.
Do you deduct withholding tax before you pay?
For most service invoices, yes. Kenya's Income Tax Act sets withholding tax on payments to non-residents. As at 1 July 2026, the rate is 20% of the gross sum for:
- management, professional, training, consultancy, agency or contractual fees
- royalties
Consultants who are citizens of East African Community states pay 15% on consultancy fees.
Software invoices need a check too. The Finance Act 2026 restated the royalty definition from 1 July 2026. It covers software, proprietary or off-the-shelf. That includes licence, development, training, maintenance and support fees. A foreign software subscription can fall under royalty.
KRA says you remit the tax within five working days of the payment. For a non-resident with no permanent establishment in Kenya, the tax is final.
So you send the invoice amount minus the tax. The exception is a contract that says you gross it up. Agree this with the supplier before the first invoice. Then the bank needs proof of the tax paid for consultancy and technical fees. Ask your tax adviser whether a tax treaty changes the rate.
Who pays the bank charges?
You choose on each payment. The field is 71A in an MT103, or the charge bearer in the ISO 20022 message.
| Option | MT103 field 71A | ISO 20022 | Who pays |
|---|---|---|---|
| You pay all charges | OUR | DEBT | You |
| Shared | SHA | SHAR | You pay your bank's charges, the supplier pays charges at its end |
| Supplier pays | BEN | CRED | The supplier |
With SHA, the supplier bears the charges levied at its end. It can then receive less than the invoice and chase you for the gap. If the invoice must be paid in full, choose OUR. Ask your bank for the full cost first.
What goes in the reference?
The reference is how the supplier matches your money to its invoice. KCB's guide calls it the details you want on the beneficiary's statement.
Since 22 November 2025, Swift says all cross-border payment instructions use ISO 20022. Your bank may still show you MT103-style field names. Here is where each invoice detail ends up.
| From the invoice | Field in the payment | What the supplier's bank sees |
|---|---|---|
| Your company name and address | 50 Ordering customer, or Debtor | Who paid |
| Supplier's legal name and account | 59 Beneficiary, or Creditor | Whose account to credit |
| Supplier's bank code | 57A, or Creditor agent | Which bank receives it |
| Invoice number and short purpose | 70 Remittance information (4 lines of 35 characters), or unstructured remittance information (140 characters) | What the payment is for |
| Charges choice | 71A, or Charge bearer | Who pays the fees |
Put the invoice number first, then a short purpose. For example: INV-2291 SPARE PARTS PO 7731. Use the supplier's legal name exactly as it appears on the invoice and the bank details.
For more on field 70 and the MT103 copy, see MT103 for Nigerian payments. The fields are the same.
Can a payment provider pay the invoice for you?
Yes. A provider can collect your shillings and pay the supplier in dollars on your behalf. This is often called payment on behalf of, or POBO.
Check three things first:
- The licence. Look the provider up in the CBK directory of authorised payment service providers, dated 10 August 2026. Money remittance providers sit in a separate directory, dated 30 September 2026.
- Whose name the supplier sees. Ask for a sample payment message. Check that your company appears as the payer, with the invoice number in the reference. See POBO for payment platforms for the fields.
- The documents. Payments abroad still go through an authorised bank or microfinance bank under section 33H. Expect the same documents above USD 10,000 and the same withholding tax proof.
The rules may change. On 21 September 2026, the Treasury and the CBK published a draft National Payment System Bill. Comments closed on 9 October 2026. Clause 48 would require the payer's and payee's names on every payment, with account numbers or a unique reference. It is still a draft.
Before you approve the payment
- The supplier's name, account and SWIFT code match the invoice, confirmed by phone.
- Withholding tax is deducted and the KRA payment is booked within five working days.
- The documents for goods or services are ready if the amount tops USD 10,000.
- The charges option matches what the invoice must receive.
- The reference starts with the invoice number.
- The rate and every charge on the final screen are checked.
- The bank's confirmation is saved with the invoice.
FAQ
Do I need documents to pay a USD invoice from Kenya?
Yes, above USD 10,000 or its equivalent. Since 2002, CBK guidelines require banks to obtain and keep supporting documents for these deals. For goods that have landed, that means the IDF, the invoice, the transport document and the customs entry.
Do I withhold tax when I pay a foreign consultant from Kenya?
Yes, usually. The rate is 20% of the gross fee for consultancy, management and professional fees paid to non-residents. Consultancy fees to East African Community citizens are taxed at 15%. Remit the tax to KRA within five working days of the payment.
Who pays the bank charges on a USD transfer from Kenya?
You choose. OUR means you pay all charges. SHA splits them, so the supplier can receive less than the invoice. BEN puts all charges on the supplier.
Can a payment provider pay my supplier for me?
Yes, if it is licensed for the service. Check it in the CBK directories first. Then ask whose name the supplier will see as the payer.
For PSPs, fintechs and platforms
If you pay suppliers for Kenyan clients, see how to pay suppliers in your client's name. Fund in local currency, including KES. Read more on our work with PSPs and fintechs, or talk to our team.