Re: DO NOT wire transfer to Kenyan banks

I am currently living in Nairobi and wanted to warn anyone traveling or moving to Kenya about a 'glitch' in the wire transfer banking process in Kenya. I transfered two large-ish amounts a month ago, from an American bank (UNFCU yes that's the UN's bank) to local banks (Standard and Habib) and as of today neither one has hit the recipient's account.

The problem is not my bank (they're pretty trustworthy) in fact they deducted my money within 24hrs and started the process, and may or may not be with the local banks, but is with an intermediary bank that all Kenyan banks use. I have done quite a lot of research/calling/complaining and have discovered that the Kenyan banks use an intermediary banking process and bank (which no-one can identify) where the middle-man literally USES YOUR MONEY to play the monies market for as long as is necessary to make a profit. They will hold your money until thy can make a good deal of money as the exchange goes up, take the profit and then give you the worst rate possible - on top of the FEE!!!!!

This is just insult to injury - not only are you expected to pay the difference when your money comes arrives shaved down by 1/3 but you also have to wait for (potentially months) for the recipient to receive the funds, during which time none of the banks supposedly involved in the process can tell you where your money is. I have been waiting to move into a house and to get the car that i paid for because no one can tell me where my money is......as much as it is less safe and is a haste, USE CASH!!!!!! no use giving some corrupt bank a free loan at your expense.

Sorry you had this problem. How long ago did you initiate the transfer.

I have never had a problem transfering money to Kenya and have transfered many times. Maybe you are unlucky or I am just extremely lucky.

Before you transfer money you should ensure that your bank is able to track funds right to the recipient bank - the sending bank is responsible for the route the funds take, after all they take a fee a well, the receiving bank knows nothing about it until it hits the account - they can't even track it..

It is fairly standard for the sender to pay all bank fees until the money hits the recipients account. Some bank route through others as they don't have a direct relationship with the recipient bank.

It has happened in the UK when I have received money from Africa - the funds routed via another bank in London who took a fee for their services and neither the sender or myself was aware of this. I am kin of wondering how you know your money has been shave down a third if you have not yet received it?

Check with your bank - they should be able to tell you the route it went and track the payment.

If for any reason the funds do not hit the account in Kenya - maybe because incorrect account details were given - then the funds will be directed back to the issuing bank - but this can take some time.

I hope your money arrives soon - and perhaps you can update everyone when it does.

Bank fees around the world are a HUGE RIPOFF !!!

Am writting from europe, by the way am from kenya.
I like to let anyone travelling to kenya that kenya bank are very safe.
I have been sending money many times , and it get through and safe to someone consern.
So my friend you i really dont agree with you what you are trying to confuse other people .
Kenya is very safe,with friendly people.
regards david.

I am in no way saying that KENYA is not safe, David, just simply that the banking is antiquated and that there is a feeling of being in the wild west when doing business here. The fact that a local bank will hold my money (for weeks on end) JUST to make money off of my money by playing the market is disgusting. This would NEVER fly in any modern country on earth, because it is STEALING. This is a problem i have had twice now and have spoken to SEVERAL other people who say the same has happened to them so it must be more than a fluke thing.

An update - i DID finally recieve ONE of the two transfers and on top of the fee paid to my bank at the begining of the process, they had given me a rate that was SEVERAL POINTS below the current exchange which means i had to pay the reciepiant MORE money to replace the money that the bank took.

As for being able to track the funds, my bank says thta they can not and the reciepiant's bank says the same. THIS is precisely the problem, i hate to think that i entrust my hard earned money to somone and they just misplace it for a few weeks. agravating and shady...

J Furyk - first of all I am pleased one of your transfers came through and I am sure the other one will as well.

I do think you are being a little harsh on Kenya banks, this DOES happen in "modern" countries - in fact I bet people all over the world have had similar experiences - it is not just happening in Africa. I don't think you should accuse people of stealing your money.

I had to wait once 6 weeks for bank transfer from Egypt to UK (normally it takes 5 days). It all depends on the routing between the 2 banks.

Although the person sending paid fees for the transfer we were charged additional fees by an intermediate bank in London and then when the payment hit our account, we did not get the "current exchange rate". You never get the current exchange rate when receiving foreign currency in a bank account - not even in the UK. SO this is NOT just a Kenya thing - it is a worldwide bank practice that is how they make additional money.

I know for a fact that a receiving bank can not track the funds until it hits them.... I mean how can they know about it until it reaches them.

I do feel that this is the responsbility of the sending bank - they charge a fee for sending a transfer and therefore they should be able to track it right until it hits the bank account it is directed to.

To me it appears that your sending bank (I assume) in a "modern" country is more at fault than the Kenyan bank. They should be able to track it.... they should have let you know the routing.

PS: In my opinion Kenya is a "modern" country.

Please do not go round Africa thinking everyone is out to "rip you off" - if you have that attitude you will not enjoy the country and people. All over the world you get good and bad.

i am not saying that Kenya is bad nor that is is underdeveloped in any way, i just know (coming from NYC) that people value the MOMENTS that they controll their money - time LITERALLY = money in the market and to have money that rightly belongs to you 'held' indefinitely and without any sort of transparency would NEVER FLY in the states or europe. Sure going between Egypt and the UK i can see the same issue and for that matter any international wire transfer opens you up to less than perfect business dealings, i think ypour point is valid - TELL your bank you want complete transparency in advance or you will not use them and then you should be fine. the problem is not KENYA that is just the place i have had experience with (and again this is not isolated, i have spoken to several others - including UN professionals - where the same has happened) the fact of the matter is it is not a glitch norcan it be blamed upon inefectual systems, this is a problem of greed, and only if WE the consumers do not allow it, will it be resolved.

Kenya ius great and i defy you to find any place in the above posts where is says otherwise, just heed the warning in the title. oh and to John's statement about the safety of Kenya....actually i live behind a nine foot electric fence with two night guadrs and a full computerized anti burgular system to back it up, NOT because i am fearful, but because i KNOW peoiple who have been beaten raped and robbed while tied up in their beds in Nairobi...it's not saying that this is a bad place, you just have to live with a different set of priorities. I am here for the long haul, but i am not daft and am just advising those who might not have seen/experienced the things i have.

LAST EDITED ON Aug-17-05 AT 04:18 PM (GMT)

LAST EDITED ON Aug-17-05 AT 04:16 PM (GMT)

I think 'furyk' has a concrete complaint although its being directed to the wrong party. Like someone said earlier, I think the problem is a universal one and not an african affair. The initiating bank should be more ethically inclined to follow the money until its received by the recipient account, since furyk as the customer gave that responsibility (and paid 4 it) to her bank in NYC, not the 'middle-man' bank. So the NYC bank is at fault here. They got the fee from fyryk and now they have to meet their end of the bargain and deliver the service paid for.
I am Kenyan living in LA, I went to my undergrad sch in Australia. My parents worked at an embassy in Belgium and once I had to drop out of a semester because the tuition did not hit my bank in Australia before the due date. The sch even gave me an extention after I convinced them it was on the way, but the money didn't hit the account until 3 weeks after the extention had expired. Last time I checked Belgium and Australia were in the developed country category and not in Africa. Again when I moved to LA for my post grad, I had the same issue (although not that serious as the first) where money was delayed by over 3 weeks, this time from Barclays Bank in Kenya to Bank of America in LA.
So please don't vent on the wrong party. Moreover, your bank in Kenya is not even a Kenyan owned institution. Majority of it is held by the investors in the UK (which is a developed country). They call the shots and they indentify and choose the banks that act as their intermidiaries (the middle-man banks). These decisions come from high up, not with the Africans who mostly serve as regional managers and below.
As for your high fenced house in Nairobi; I do agree that Nairobi is crime infested, just like NYC is. NYC has one of the highest crime rates in the USA. Not to mention Baltimore and LA which have higher. I guess thats why most homes in Beverly Hills have the same security measures as the one you have in Nairobi.
Rapes are prevelent in NYC just as they are in Nairobi and don't say that you don't know anybody who has been raped in the USA. In addition, the USA has the highest number of murders in the WORLD.

Although I really sympathize with you I disagree with our blanket condemnation of the banking system in Africa which to alot of the trusting and sometime people from west who are ignorant would lose trust in the banking system.
I work in the travel industry and every other day we receive funds from all corners of the world and even senders most of whom have dealt with banks all over the world do not complain.
Maybe there is some streamlining to be done but considering the gains made over the past few years in a continent which had a slow and unreliable system a few years ago we should appreciate the continent is on the right track and the good news is all banks have taken the que and are now automated.
Inspite of a genuine complaint the picture potrayed in the message depicts a pathetic and backward system based on theft and unprofessional tenets.

For what happened to you, i guess it is a matter of lack here also,

I agree with our friend and i know this is a global problem not just on kenyan banks.
Every bank in the world has employed people/human beeings who will sometimes and many times do mistakes.

Last year i send money to a Canadian bank and for about 5weeks no one would explain where my money was.
On going back to my bank here in Kenya they informed me that i had given the wrong bank details and that i needed to resend the same.At that time the money had not been received back but was to in a few days time.(6weeks)
I felt ripped off, because i had to pay for the service again.

Todate i wonder why it had to take 5 weeks to have that done.

Sorry and enjoy your stay in kenya, hope you receive the rest of the money soon.

hello,
i really need help getting the routing number to the Barclays bank of Kenya. Can you please help me.

US banks are not any better in 2011. To transfer from on bank to another across the same city takes more than 10 days!!! An I am talking big reputable banks like Citi to chase and the like.