Community guides / Community Resources
How to Send Money to Somalia, Ethiopia, and East Africa from the US
Published 2025-05-15 · Updated 2026-08-31 · 9 min read · National
A complete guide to remittance services for sending money to East Africa — comparing Dahabshiil, WorldRemit, Wave, Western Union, and hawala services for East Africans in the US.
Remittances from the Somali and East African diaspora in the US are a critical financial lifeline for families back home. Somalia alone receives an estimated $1.4–2 billion annually in remittances from the diaspora — a figure that far exceeds foreign aid.
Top Remittance Services for East Africans in the US
Dahabshiil
The most trusted name for sending money to Somalia. Founded in 1970, Dahabshiil has over 26,000 agent locations worldwide, including hundreds in Somalia.
Pros: Trusted, wide Somalia coverage, cash pickup available in remote areas
Cons: Higher fees than digital-only options
Fees: Typically 3–5%
Delivery speed: Same-day to 24 hours
App: Available on iOS and Android
Website: dahabshiil.com
WorldRemit
Digital-first service with excellent coverage for Somalia, Ethiopia, and Kenya.
Pros: Fast (often minutes), competitive fees, mobile money delivery
Cons: New users may face verification delays
Fees: Varies, typically $3–$7 flat fee for smaller transfers
Best for: Ethiopia, Kenya, Tanzania, Uganda
Wave Money Transfer
A digital transfer option whose fees and country coverage can change.
Pros: Very low fees (sometimes under 1%), fast
Cons: Coverage limited to certain countries
Best for: Senegal, Mali, Ivory Coast (less coverage for East Africa)
Western Union / MoneyGram
Traditional services with the widest global reach.
Pros: Available everywhere, cash pickup anywhere
Cons: High fees, poor exchange rates
Fees: Often 5–8% total cost when including exchange rate markup
Best for: Recipients in areas with limited digital access
Remitly
Popular app-based service with good Ethiopia and Kenya coverage.
Fees: Competitive, $1.99–$3.99 for express delivery
Best for: Ethiopia, Kenya, Tanzania
Understanding Hawala
Hawala is an informal value transfer system widely used in the Somali community. Money is delivered through a network of brokers (hawaladars) using codes and trust — no actual money crosses borders.
How it works:
1. You give cash + recipient info to a local hawaladar
2. Hawaladar communicates code to partner in destination country
3. Recipient receives cash from local partner there
Pros: Fast, works in areas with no banks, community trusted
Cons: Unregulated, no receipt/recourse if something goes wrong
Many Somali-owned businesses in Minneapolis, Columbus, Seattle, and other cities act as hawala agents. Ask at your local Somali community center.
Tips for Smart Remittances
1. **Compare fees on Remitly.com or Google "send money to [country]"** before each transfer
2. **Send larger amounts less frequently** to reduce per-transfer fees
3. **Use mobile money when available** (M-Pesa for Kenya, EVC Plus for Somalia) — faster and cheaper
4. **Avoid airport and hotel exchange counters** — worst rates
5. **Keep transfer receipts** for tax purposes (US persons must report foreign transfers over $10,000)
Tax Considerations
Large or frequent remittances may have tax implications:
- Report cash transactions over $10,000 (Bank Secrecy Act)
- Gift-tax thresholds change; check current IRS guidance or ask a qualified tax professional
- Foreign bank accounts over $10,000 require FBAR reporting
Consult a tax professional familiar with immigrant finances — many East African accountants in Minneapolis, DC, and Columbus specialize in this.
Sources and further reading
Next step
Search the Shaafi Directory for current local listings and contact details.