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I am concerned that Mpesa Exchange rate are too low

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

Somebody somewhere is taking advantage of freelancers.

The issue started 3 or 4 weeks ago in what I want to believe was a "testing phase". Different freelancers would withdrawal their hard earnings and get different rates. I know this because I am a member of a facebook group and somebody pointed out this issue and many freelancers confirmed that it was happening.

So some freelancers received:
1 USD - 103 KES
Others
1 USD - 94.7 KES

This affected freelancers withdrawing funds to their mobile Money (Mpesa). At that time all bank withdrawals to local currency were getting 1 USD - 103 KES.

As of last week, whether you are doing withdrawal to the bank or to the mobile money, the rate has flattened to 1 USD - 94.7 KES.

Currently, transferwise, a company Upwork was using until few months, has a Paypal - Mpesa KES at a rate of 1 USD - 104 KES. (Unfortunately most freelancers avoid Paypal because they've a habit of suspending account with your money for no apparent reason).

As of today, the exchange rate is at 1 USD - 107 KES.
Current rate.png

Upwork is giving an exchange rate of 1 USD - 94.7 KES.

Upwork rate.png

If I was to withdraw 500 USD today, instead of getting 53,500.00 KES, I would get 47,000.00. That is 65 USD less. We've slightly over 50K active freelancers from Kenya. Meaning if each freelancer was to withdraw 100 dollars each week, we would lose 12 dollars per freelancer, 600K USD for 50K freelancers per week.

I have heard a million times that Upwork has little or no control over the exchange rates but this is not true. They've changed companies doing the exchange rates before. It's okay if we were to get a 2 or 3 shillings below the current Central Bank exchange rate (As it has always been), but a whooping 13 Kenyan shillings is simply stealing from freelancers. I hope this gets to the right person and something is done soon! I remember few years ago Upwork refunded us for the poor exchange rate. I hope this will get to the right people and the issue will be resolved.

martinkinyua12
Active Member
Martin M Member Since: Jun 13, 2019
12 of 18
Exactly why they want you to work for upwork, I mean the real money is in money exchanges and forex trading.
hwaithera
Active Member
Helen W Member Since: May 25, 2020
13 of 18
What? That is absolutely unacceptable!!!! I hope this reaches the concerned party. It needs to STOP. We are enjoying great rates at PayPal and I believe the foreign exchange market is the same. Such a huge difference raises eyebrows for sure.
essayraptor
Active Member
Wiliam M Member Since: Aug 17, 2017
14 of 18

Hey Muia N, you have captured the predicament we are facing very nicely. A markup of 1 to 3 shillings is understandable but ksh 13 means giving over 10% of one's earnings to an intermediary whose only job is to remit our hard earned cash and it is unfair. I am sure it is either a system error on Upwork's website or deliberate effort by whatever bank remits the money to fleece us. 

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

I did escalate this complaint and they are investigating into it.

irache
Active Member
Natalia L Member Since: Nov 14, 2019
16 of 18
I don't think that is the reason. In my understanding if Payer A (upwork) convets the funds to the target currency then is on upwork "banking system " to apply the rate, however if the amount is transferred in Dollars to your account, ONLY THEN your bank is applying the currency rate and the conversion. Well this possibility of choosing is not available in Upwork so in my understanding this is Upwork currency rate
pilla
Active Member
Kenneth M Member Since: Jul 1, 2019
17 of 18

Today, the same very low rates apply.
Is it possible for someone to look unto this matter since the rates have a very huge difference and looks unscrupulous

isaiah_kinyanjui
Active Member
Isaiah K Member Since: Aug 6, 2020
18 of 18

I feel something is wrong, am a Kenyan freelancer and the dollar to Kenyan shillings conversion am getting it's not marching with the current in the market, can someone look into that?

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