Tips for Converting USD to Kenyan Shillings Without Losing Money

The shilling is Kenya’s official currency, which is abbreviated as Ksh. The legal tender is available in coins of 1 shilling, 5 shillings, 10 shillings, and 20 shillings, and in notes of 50 shillings, 100 shillings, 200 shillings, 500 shillings, and 1000 shillings respectively.

When visiting Kenya, it’s recommended that you convert your foreign currency to Kenyan shillings to access basic goods and services. Cash is the preferred form of payment for petty transactions such as transport, local foods, tipping of tour guides, and many others.

If you intend to convert USD to Kenya shillings, it’s useful to know where you can exchange your money to have more in your pocket for your adventurous safari. This article shows how you can do this at competitive exchange rates and without unnecessary fees.

Understanding the currency exchange rate

To easily understand how currency exchange rates work, picture yourself buying an orange. The grocery is charging $5.00 for one kilogram of the fruits and a week earlier the same quantity was going for $3.00. This means the value of your dollar was stronger when buying oranges a week ago than today.

Like the produce prices, the value of USD against other currencies keeps fluctuating minute by minute. You can pay more in US dollars to have a given amount of Kenyan shillings or less for the same amount of shillings depending on where you are trading and other external factors.

Understandably, a United States dollar is worth more than a Kenya shilling but this has nothing to do with the cost of the items. Market forces determine the relative cost of items in a given area. For example, the cost of a banana in Kenya is much cheaper than in the United States.

Exchanging USD to Kenya shillings

When exchanging US dollars for Kenya shillings, here is how to get the best deal for your money:

1. Get Kenyan shillings at your local bank

Before traveling to Kenya, visit your bank and request for Kenyan shillings in exchange for the US dollars in your account. Many major banks do not disappoint in this. Your currency will be converted without charging an additional fee beyond the exchange rate.

It’s not uncommon for the bank to ask you to wait for a few days before they get the foreign currency for you. If you prefer this option, keep in mind that you can’t bring so much money to Kenya without declaring at the airport. 

According to the law, any person leaving or entering Kenya is permitted to take from or bring into the country up to KSh500,000 of Kenyan currency and a foreign currency equivalent to a maximum of US$6,250 without duty. Amounts more than $10,000 must be declared.

2. Convert your currency at a Kenyan bank on arrival 

Most banks in Kenya offer competitive exchange rates for any currency. Travelers through the Jomo Kenyatta International Airport in Nairobi have access to a number of banks within the terminus where they can safely convert their currency to Kenyan shillings. 

Among them include the National Bank of Kenya, and the Access Bank of Kenya. More banks are conveniently located within Nairobi’s Central Business District and its surroundings. When getting there avoid openly carrying your money bags or briefcases.

3. Use ATMs in Kenya to get shillings

Some banks won’t exchange currency if you’re not a customer but they will certainly do so if you are withdrawing the money using your card. This shouldn’t be a problem if you have a Visa or Mastercard. When withdrawing your cash accept charges to be deducted in Kenya shillings to save more.

Keep in mind that most ATMs in Kenya will limit you to a lower amount of withdrawals as compared to what your bank allows. You may visit your bank in advance to request if they can increase your daily limit so that you can withdraw enough money while in Kenya.

Your bank knowing that you will be using your card in a foreign country is also vital. Due to security concerns, you might not access your cash at the ATM while in Kenya if your bank at home has not authorized it. Be sure to inform them before you travel.

4. Avoid exchanging currency at airport bureaus 

Upon landing in Kenya, you will notice some currency exchange kiosks at the airport. It can be tempting to convert your USD to shillings here especially when you feel pressured with time. These bureaus offer convenience, but their exchange rates are typically much less favorable than at banks.

Airport forex bureaus may also charge higher transaction fees as compared to what their counterparts in the CBD are offering. However, if you are in a hurry, or you are traveling on short notice, it could be worth paying the extra cost to have your currency converted to Kenyan shillings.

5. Converting currency at your hotel is also a wrong idea

Some hotels in Nairobi offer currency exchange services to their guests. While it may appear convenient, their rates are always not competitive. On arrival, it’s wise to conserve your foreign cash and pay with your credit or debit card and later find the best place you can exchange your money.

Since you are in a foreign country, you may also not avoid sneaky transaction fees on your card. Call or visit your bank to enquire about any charges on your card while in a foreign country and if possible apply for a credit card that doesn’t charge foreign transaction fees.

Final thought

When visiting Kenya, it’s recommended to have Kenya shillings in cash to use for petty transactions. Most hotels, restaurants, and entertainment places accept card swiping and you can directly pay from your local bank but you will likely incur some transactional fees.

If you prefer exchanging or converting a few of your US dollars to Kenya shillings, a big bank like KCB, Standard Chartered, Absa, and many others will offer competitive exchange rates as compared to forex merchants at the hotels or airport bureaus.

One more trick that will help you avoid losing money while converting your currency is involving your local bank in your plans. Let them know you will be traveling and they can help convert your money to Kenyan shillings competitively without charging exorbitant transaction fees.