NGO payments: How to cut cost by 15-20%
Jan 13, 2026
The Cost You're Not Counting
Your NGO just received a KES 10 million grant to support 1,000 vulnerable families.
Then reality hits:
Wire transfer fees: KES 350,000
Bank charges: KES 80,000
Currency conversion: KES 150,000
Staff time processing payments: KES 120,000
Travel to distribute cash: KES 100,000
Total cost to deliver KES 10 million: KES 800,000 (8%)
Families you actually help: 920, not 1,000
80 families don't get assistance because of payment costs.
This is the hidden tax on humanitarian work in Kenya. But it doesn't have to be this way.
The Real Cost of Traditional NGO Payments
Method 1: International Wire Transfers
The costs:
Sending bank fee: $25-$50 (KES 3,250-6,500)
Receiving bank fee: KES 2,000-5,000
Intermediary bank fees: $15-$30 (KES 1,950-3,900)
Currency conversion markup: 2-3%
Total: 5-8% of transfer amount
Example: $100,000 USAID grant loses $5,000-8,000 in fees before reaching beneficiaries.
Method 2: Western Union / MoneyGram
The costs:
Transfer fees: 5-10%
Currency conversion markup: 3-5%
Total: 8-15% of transfer amount
Method 3: Cash Distribution
The costs:
Transport: KES 50,000-150,000 per distribution
Security: KES 30,000-100,000
Staff time: 4 staff × 5 days × KES 10,000 = KES 200,000
"Leakage": 2-5% (theft, errors, corruption)
Example: Distributing KES 5 million cash costs KES 570,000 (11.4%)
Hidden costs:
Staff safety risks
No automatic audit trail
Beneficiary travel costs
Days lost waiting for distribution
The Mobile Money Alternative: Real Numbers
Distribution to 1,000 Beneficiaries
Traditional cash distribution:
Total funds: KES 5,000,000
Distribution costs: KES 420,000
Leakage (3%): KES 150,000
Cost: 11.4%
Mobile money via IntaSend:
Total funds: KES 5,000,000
Transaction fees: KES 150,000 (3%)
Staff time: 1 day = KES 10,000
Cost: 3.2%
Savings: KES 410,000 (8.2%)
Additional families served: 82 families
Annual Impact
Medium-sized NGO distributing KES 60 million annually:
Traditional methods (8% cost):
Payment costs: KES 4.8 million
Net to beneficiaries: KES 55.2 million
Mobile money (3% cost):
Payment costs: KES 1.8 million
Net to beneficiaries: KES 58.2 million
Annual savings: KES 3 million
Additional impact: 600 more families served
Real-World NGO Scenarios
Monthly Cash Transfer Program
Profile: 2,000 beneficiaries, KES 3,000 each, KES 6 million monthly
Old method:
Distribution costs: KES 500,000 monthly
Leakage: KES 120,000 monthly
Annual waste: KES 7.44 million
IntaSend M-Pesa payments:
Transaction fees: KES 180,000 monthly
Processing: KES 15,000 monthly
Annual cost: KES 2.34 million
Annual savings: KES 5.1 million
Emergency Relief
Profile: 5,000 families, KES 5,000 each, KES 25 million total
Old method:
Western Union + cash distribution: KES 2,725,000 (10.9%)
Timeline: 7-10 days
Direct M-Pesa:
Transaction fees: KES 750,000 (3%)
Timeline: 24 hours
Savings: KES 1,975,000 (395 additional families)
Speed: 24 hours vs. 7-10 days
Beyond Cost: Hidden Benefits
1. Donor Accountability
IntaSend's transparent payment solutions provide automatic audit trails:
Real-time dashboard for every payment
Recipient name, phone, amount, timestamp
Geographic distribution of funds
Export reports in any format
Result: USAID and EU audits become simple. Finance teams spend 30-40% less time on compliance.
2. Reach Remote Beneficiaries
M-Pesa reaches where banks don't:
200,000+ agents across Kenya
95% country coverage
Even remote areas like Turkana, Mandera, Marsabit
Beneficiaries:
Receive SMS notification
Walk to nearest agent (within 2km)
No travel to town/bank
3. Speed in Emergencies
Traditional timeline: 11-14 days (wire → bank → cash → transport → distribution)
Mobile money timeline: 3 days (wire → bulk M-Pesa → beneficiaries receive)
In flood/drought emergencies, 10 days earlier saves lives.
4. Reduced Corruption
Mobile money prevents common leakage:
Every payment to verified phone number
Can't add ghost beneficiaries
Beneficiaries confirm receipt via SMS
Complete digital trail
Impact: 2-5% leakage elimination = hundreds of thousands saved annually
How IntaSend Works for NGOs
Step 1: Simple Setup (Day 1)
Upload beneficiary list via Excel:
Name, ID number, phone number, amount
System validates phone numbers
Duplicate detection
Setup time: 2-4 hours
Step 2: Bulk Payment (2-3 minutes)
Review payment list
Click "Execute Payment"
System sends M-Pesa to all beneficiaries simultaneously
Receive confirmation within minutes
Your time: 15 minutes for 1,000 payments
Step 3: Automatic Reporting
Generate reports showing:
Total disbursed by region/county
Individual payment details
Success rate (typically 98%+)
Cost breakdown
Export formats: Excel, PDF, CSV for donor reporting
Common Questions
"Will beneficiaries accept mobile money?"
Yes, enthusiastically. It's more convenient (no travel), safer (no carrying cash), and faster than waiting for "distribution day."
Experience: 95%+ beneficiary satisfaction
"What about beneficiaries without M-Pesa?"
Help them register during first disbursement (takes 5 minutes). Provide registration guide in local language. By second disbursement, 98%+ are registered.
"Is this more work for our finance team?"
No, it's 80% less work.
Current process: 30 hours/month (payment vouchers, bank transfers, reconciliation, reports)
IntaSend process: 1 hour/month (upload list, execute payment, export reports)
"What about internet in field offices?"
Process payments from Nairobi (or anywhere with internet). Beneficiaries receive via SMS (no data required). Field staff just help with registration/troubleshooting.
Your Savings Calculator
Monthly beneficiary payments: KES _________
Current payment costs (8%): KES _________
IntaSend costs (3%): KES _________
Monthly savings: KES _________
Annual savings: KES _________ × 12
Additional beneficiaries served: Annual savings ÷ Payment per beneficiary
The Bottom Line
Every shilling spent on payment fees is a shilling not spent on program impact.
If you're losing 8-10% to payment costs, you're not maximizing donor funds.
Kenyan NGOs using IntaSend are serving 15-20% more beneficiaries with the same budget.
What you get:
15-20% cost reduction (KES 3-6 million saved annually)
Reach remote beneficiaries (M-Pesa everywhere)
Automatic audit trails (donor compliance solved)
24-hour disbursement (emergency-ready)
7-country coverage (Kenya, Uganda, Tanzania, Nigeria, Ghana, Cameroon, Ivory Coast)
Zero monthly fees (pay only transaction fees)
Start Saving Today
Every month you delay costs your beneficiaries.
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Need help calculating your savings?
Call/WhatsApp: +254 711 082 947
Email: support@intasend.com
Your donors gave you funds to maximize impact. Are you maximizing it?
