Kenya’s diaspora remittances softened at the start of 2026, with inflows falling 3.8% year on year to KSh 53.1 billion (US$ 411.3 million) in January, down 5.5% from December, Central Bank of Kenya data shows.
- •The pullback followed a strong fourth quarter of 2025 and marked the weakest January inflow since 2024.
- •The January easing reflected seasonal moderation after year end transfers and weaker inflows from Gulf corridors.
- •North America remained the anchor source, accounting for more than half of total remittances, led by the United States, while Europe ranked second, and Asia recorded the sharpest slowdown.
Despite the January dip, the broader trend remained resilient. Total inflows over the latest 12 months reached KSh 648.0 billion (US$ 5.02 billion), up 1.2% from the prior comparable period. While growth slowed sharply from the double digit expansion recorded in 2024, the data points to stabilization rather than reversal.
Full year 2025 remittances hit a record KSh 649.7 billion (US$ 5.04 billion), up 1.9% from 2024. The moderation came against a backdrop of shifting labour dynamics in the Middle East and tighter household budgets in some destination markets.
America dominated inflows in 2025, contributing KSh 377.2 billion (US$ 2.92 billion), or 58 percent of the total. Europe accounted for KSh 117.1 billion (US$ 0.91 billion), lifting its share to 18%. Asia’s contribution fell 14.7% to KSh 80.1 billion (US$ 0.62 billion), driven by a 25% year on year decline in remittances from Saudi Arabia and softer identical flows from the United Arab Emirates.
A notable corridor shift emerged during the year. The United Kingdom overtook Saudi Arabia as Kenya’s second largest source of remittances, with UK inflows totaling KSh 46.5 billion (US$ 360.2 million) compared with Saudi Arabia’s KSh 39.0 billion (US$ 302.1 million). Australia also posted strong growth, lifting remittances from Australia and Oceania by more than 25% year on year.
| Source Region | 2025 (KSh) | 2024 (KSh) | YoY Change (KSh) | YoY (%) |
|---|---|---|---|---|
| 🌎 America | 376.7 Bn ($2.92 Bn) | 358.4 Bn ($2.78 Bn) | ▲ +18.8 Bn (+$146 Mn) | ▲ +5.3% |
| 🇪🇺 Europe | 117.1 Bn ($907.7 Mn) | 109.9 Bn ($852.0 Mn) | ▲ +7.2 Bn (+$55.7 Mn) | ▲ +6.5% |
| 🌏 Asia | 80.1 Bn ($621.1 Mn) | 93.9 Bn ($728.2 Mn) | ▼ -13.8 Bn (-$107.1 Mn) | ▼ -14.7% |
| 🌍 Africa | 40.9 Bn ($317.0 Mn) | 48.2 Bn ($373.5 Mn) | ▼ -7.3 Bn (-$56.5 Mn) | ▼ -15.1% |
| 🇦🇺 Australia and Oceania | 30.5 Bn ($236.7 Mn) | 24.3 Bn ($188.3 Mn) | ▲ +6.2 Bn (+$48.4 Mn) | ▲ +25.7% |
| 🌐 Other Countries NES | 3.9 Bn ($30.0 Mn) | 3.3 Bn ($25.2 Mn) | ▲ +0.6 Bn (+$4.8 Mn) | ▲ +19.3% |
| GRAND TOTAL | 649.7 Bn ($5.04 Bn) | 637.9 Bn ($4.95 Bn) | ▲ +11.8 Bn (+$91.5 Mn) | ▲ +1.9% |
US$ Rate: 129.00 KSh
Remittances continue to play a critical macroeconomic role. Kenya ran an estimated goods trade deficit of about KSh 1.63 trillion in 2025, with imports of roughly KSh 2.74 trillion far outstripping exports of about KSh 1.11 trillion. Diaspora inflows covered close to 40% of that gap, underlining their importance as a non-debt source of foreign exchange.
The Central Bank of Kenya has repeatedly cited remittances as a key buffer supporting exchange rate stability and foreign exchange reserves, which entered 2026 near record highs. The bank expects moderate growth in diaspora inflows in 2026, reinforcing their role as a steady anchor in Kenya’s external financing mix.
