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I am concerned that Mpesa Exchange rate are too low

pilla
Active Member
Kenneth M Member Since: Jul 1, 2019
1 of 18

I am concerned that Mpesa Exchange rate are too low considering the dollar exchange rate is very high.

Am getting an exchange of 94 usd but the current exchange rate is 107 usd
You should keep on updating the rates to the retest market rates

djondinium
Community Manager
Aleksandar D Community Manager Member Since: Mar 23, 2019
2 of 18

Hi Kenneth,

 

Please keep in mind that the difference in exchange rates is not something Upwork can control. When a bank converts a transaction, they will mark up the interbank rate to buy or sell a currency. Online calculators will not take into consideration the mark up that is applied. Since rates constantly change throughout any given day, the rate you received is the rate offered by our bank at the time your specific transaction was processed.

 

Thank you.

~ Aleksandar
Upwork
pilla
Active Member
Kenneth M Member Since: Jul 1, 2019
3 of 18

Thank you for this response.
But kindly confirm with the bank why they are offering low rates on Upwork but when I use the same bank using different platform the rates are okay (103 usd today).
I think they do have a problem updating thei rrates in upwork.

pilla
Active Member
Kenneth M Member Since: Jul 1, 2019
4 of 18

Since last week I have been trying to withdraw using Mpesa but the current exchange rate is way below the actual exchage rate. I am sure the bank is not updating these rates. Could someone probe into this matter.

essayraptor
Active Member
Wiliam M Member Since: Aug 17, 2017
5 of 18

Don't know if any other Kenyan freelancer is experiencing this but why is the USD to Ksh rate on Mpesa  so low today? Last time I withdrew money, which was last week, I received an exchange rate of Ksh 102 to the dollar. Since then, I understand the dollar has strengthened further against the shilling yet today Upwork is offering an exchange rate of around Ksh 94.75. Haven't seen it this low since I joined Upwork in 2017. 

g_vasilevski
Moderator
Goran V Moderator Member Since: Mar 24, 2017
6 of 18

Hi Wiliam,

 

Difference in exchange rates is not something Upwork can control. When a bank converts a transaction, they will mark up the interbank rate to buy or sell a currency. Online calculators will not take into consideration the mark up that is applied. Since rates constantly change throughout any given day, the rate you received is the rate offered by our bank at the time your specific transaction was processed. Thank you.

~ Goran
Upwork
pilla
Active Member
Kenneth M Member Since: Jul 1, 2019
7 of 18

Kindly there is  need to investigate into this matter with the associated bank

samdaggy
Active Member
Muia N Member Since: Nov 18, 2019
8 of 18

Goran, this is the standard response we keep getting. Can't somebody take a minute investigate this and find out why such a big difference. If anything, the dollar is strengethening against KES but they've maintained a flat rate 1 USD - 94.7 KES. 94.7 is the lowest I have seen for years!

essayraptor
Active Member
Wiliam M Member Since: Aug 17, 2017
9 of 18

Thanks for the reply Goran. I understand what you are saying but I refuse to believe that Upwork has no way to intervene. The bank that handles these transactions is clearly taking advantage of Kenyan freelancers. If it were purely a matter of fluctuating currency exchange rates, why is the rate we are being offered stuck at exactly Ksh. 94.7578? This represents a markup of nearly 12 shillings which is a whopping 10+ percent. I have to point out again that this is a recent issue since as recenty as last week, we were getting around the 103 mark. I also understand that the issue is only affecting some freelancers. I am sure Upwork is able to remedy this by talking to whichever intermediate bank does these transactions. 

pilla
Active Member
Kenneth M Member Since: Jul 1, 2019
10 of 18

I thought I was in this alone.
This issue needs to be looked unto in a more detailed manner since there is no way the echange rate can be this low at this time. 

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