Currency Conversion

If you have used Opengates, you have probably noticed that all prices, contract values, and earnings are displayed in US Dollars (USD), but when you receive a payout, it arrives in Kenyan Shillings (KES). This is by design, and this guide explains exactly how the currency conversion process works, when the conversion happens, how exchange rates are determined, and practical tips for managing the difference between the two currencies.

Why Prices Are Displayed in USD

Opengates displays all prices in US Dollars for several important reasons:

Global Consistency

USD is the most widely recognized and used currency in international commerce. By using USD as the standard display currency, Opengates creates a level playing field where every user — regardless of their location — sees the same prices. This is especially important for a freelancing marketplace where clients and freelancers may come from different countries and regions.

Simplified Pricing

Using a single currency across the platform eliminates confusion. Freelancers can set their rates once in USD, and clients can compare proposals without worrying about converting between different local currencies. Whether a task is posted from Nairobi, Lagos, or New York, the price is always in USD.

Market Standardization

Many international freelancing platforms use USD as their base currency. By aligning with this standard, Opengates makes it easier for users who are familiar with other platforms to understand pricing and set competitive rates.

Why Payouts Are in KES

While prices are displayed in USD for consistency, payouts are made in Kenyan Shillings (KES) because:

• Local banking and mobile money systems operate in KES. Your M-Pesa account and Kenyan bank accounts hold funds in KES.
• Paystack, the payment processor used by Opengates, settles payments to Kenyan recipients in the local currency.
• Practical usability — You spend money in KES for your daily expenses, so receiving payouts in KES means you can use your earnings immediately without needing to perform a separate currency exchange.

How the Conversion Works

The conversion from USD to KES happens automatically when a payout is processed. Here is a step-by-step breakdown of the process:

Step 1: Earnings Are Tracked in USD

All your earnings on Opengates — whether pending or paid out — are tracked and displayed in USD. When a client funds a $100 escrow, your dashboard shows the contract value as $100. When the work is approved and the service fee is deducted, the net amount is shown in USD.

Step 2: Client Releases Payment

Once the client approves your work and releases the payment, the platform fee is deducted and the payout is triggered instantly. For example, your net earnings from a $100 contract after the 12% standard fee would be $88.

Step 3: Exchange Rate Is Applied

At the time the payout is processed, the current market exchange rate for USD to KES is applied. This rate is determined by real-time market conditions and is sourced through Paystack's banking and payment network.

For example, if the exchange rate at the time of payout is 1 USD = 153 KES:

• Payout amount: $88 USD
• Converted amount: $88 × 153 = KES 13,464

Step 4: Funds Are Sent in KES

The converted KES amount is sent to your M-Pesa account or bank account. The KES amount you receive is final — there is no further conversion after this point.

When Does the Conversion Happen?

This is one of the most important things to understand about currency conversion on Opengates. The exchange rate is not locked in when the client pays or when the escrow is funded. The conversion happens at the time the payout is processed — which is instant when the client releases the payment.

This means:

• The exchange rate applied will be the rate at the moment the client releases payment and the payout is processed.
• If the exchange rate changes between when the escrow was funded and when the client releases payment, your KES payout will reflect the rate at release time.

Example: How Timing Affects Your Payout

Imagine you complete work on different days and the client releases payment at different exchange rates:

In this example, the Wednesday payout gives you KES 2,500 more than Friday — a meaningful difference. However, since payouts are instant and automatic, the timing is determined by when the client releases the payment.

Understanding Exchange Rate Fluctuations

Exchange rates between USD and KES (and all currency pairs) fluctuate constantly based on a variety of economic factors. Here are some of the key factors that can affect the USD/KES exchange rate:

Economic Factors

• Inflation rates — Higher inflation in Kenya relative to the US can weaken the KES against the USD.
• Interest rates — Changes in interest rates set by the Central Bank of Kenya or the US Federal Reserve can influence the exchange rate.
• Trade balance — Kenya's import and export balance affects demand for USD and KES.
• Foreign investment — Inflows and outflows of foreign investment in Kenya impact the exchange rate.

Market Factors

• Global events — International economic news, geopolitical events, and commodity price changes can cause exchange rate movements.
• Supply and demand — The basic supply and demand for each currency in the foreign exchange market drives daily fluctuations.
• Seasonal patterns — Certain times of the year (such as tourist seasons or agricultural harvest periods) can influence currency flows.

What This Means for You

Exchange rate fluctuations are normal and expected. On any given day, the rate might be slightly higher or lower than the previous day. Over longer periods, the rate can change more significantly. As a freelancer on Opengates, this means the KES value of your USD earnings will naturally vary from payout to payout.

The Conversion Rate vs. Market Rate

You may notice that the conversion rate applied by Opengates is slightly different from the "market rate" you might see on Google or financial news websites. There are a few reasons for this:

1. Mid-market rate vs. actual transaction rate — The rates shown on Google and financial sites are typically the "mid-market" rate, which is a theoretical average between the buying and selling prices. Actual transactions always use either the buy or sell rate, which differ from the mid-market rate.

2. Payment processor spread — Paystack, like all payment processors, may apply a small spread (the difference between the buy and sell rate) to cover its foreign exchange costs and risks. This spread is a standard practice in the financial industry.

3. Timing differences — Exchange rates change by the second. The rate at the exact moment your transaction is processed may differ from what was displayed seconds earlier.

The overall difference is typically small, but it is good to be aware of it so you have realistic expectations about your KES payout amounts.

Viewing Your Conversion Details

Opengates provides full transparency on currency conversions. For each payout, you can see:

• USD amount — The amount that was paid out.
• Exchange rate applied — The exact USD/KES rate used for the conversion.
• KES amount received — The final amount sent to your M-Pesa or bank account.
• Timestamp — The exact date and time the conversion was processed.

To view these details:

1. Go to Earnings → Payout History.
2. Tap on any payout to see the full breakdown, including the exchange rate that was used.

Tips for Managing Currency Differences

While you cannot control exchange rates, here are some practical strategies to manage the impact of currency conversion on your earnings:

1. Price Your Services with Conversion in Mind

When setting your rates in USD, consider what the equivalent amount would be in KES at current exchange rates. This ensures your take-home pay in KES meets your financial needs regardless of small rate fluctuations.

2. Monitor Exchange Rate Trends

Keep an eye on the general direction of the USD/KES exchange rate. While day-to-day movements are unpredictable, longer-term trends can give you a sense of what to expect from your payouts.

You can check exchange rates using:

• Your banking app (most Kenyan banks display current forex rates)
• Financial websites like xe.com or Google (search "USD to KES")
• The Central Bank of Kenya's daily rate publications

3. Factor Conversion into Your Financial Planning

When budgeting or planning your finances based on Opengates income, use a conservative exchange rate estimate. This way, you are prepared even if the actual rate is slightly less favorable than expected, and pleasantly surprised when it is better.

Frequently Asked Questions

Can I choose to receive my payout in USD instead of KES?

Currently, Opengates processes all payouts in KES through Paystack. USD payouts are not available at this time.

Is there a fee for currency conversion?

The currency conversion is built into the exchange rate applied at the time of payout. There is no separate "conversion fee" line item, but the applied rate includes the payment processor's spread.

Do my earnings lose value if the exchange rate changes while they are in my Opengates balance?

Your Opengates balance is always displayed and tracked in USD. The USD amount does not change due to exchange rate fluctuations. However, the KES equivalent of that USD amount will change as the exchange rate moves.

Can I lock in an exchange rate?

No, exchange rates cannot be locked in advance. The rate is determined at the time the payout is processed.

Why did I receive a different KES amount than I expected?

The most likely reason is that the exchange rate at the time of payout was different from the rate you checked earlier. Exchange rates change frequently throughout the day.

Still need help? Contact our support team and we'll be happy to assist you.