A new national survey has revealed wide differences in the cost of receiving and cashing out diaspora remittances in Kenya, with some countries proving significantly more expensive than others for recipients on the ground.
The 2025 Remittances Household Survey conducted by the Central Bank of Kenya (CBK), the Kenya National Bureau of Statistics (KNBS), and FSD Kenya shows that while remittances remain a relatively cheap source of cross-border income overall, the final cost of accessing the money varies sharply depending on the sending country and payout channel.
According to the findings, recipients of money sent from South Africa pay the highest encashment charges among the top 20 remittance corridors. On average, they lose about Sh15.8 for every Sh1,000 received. Qatar follows closely at Ksh 14.5, while Turkey ranks third at Ksh 14.1. Australia and Saudi Arabia also feature among the most expensive routes, at Ksh 13.2 and Ksh 11.0, respectively.
The survey notes that these differences are driven less by the amount sent and more by the structure of transfer networks, including fees charged by money transfer operators, exchange rate margins, and the availability of payout infrastructure in Kenya.
Even so, the report stresses that the broader remittance system remains relatively low-cost when viewed as a whole. Across the top 20 sending countries—responsible for about 96 per cent of all cash remittance inflows into Kenya—the average cost of encashing funds stands at around Sh8 for every Sh1,000 received. That is less than one per cent of the transaction value.
As the report puts it, “On average, the cost of encashing the equivalent of Ksh 1,000 from the top 20 source countries, accounting for 96.0 per cent of the total cash remittance inflows, was about Ksh 8.0, representing less than 1.0 per cent of the transaction value.”
However, the CBK, KNBS and FSD Kenya data also show that behind this low average are clear disparities between corridors. Some countries consistently record higher costs, while others remain very cheap due to stronger competition among service providers or more efficient payout systems.
For example, Italy records a cost of Ksh 9.5 per Ksh 1,000, Norway Ksh 8.6, the United States Sh8.5, and the United Arab Emirates Sh8.2. Egypt stands at Ksh 7.2, while Germany, Tanzania and Ethiopia range between Ksh 6.6 and Ksh 6.0.
Neighbouring countries tend to be cheaper overall. South Sudan averages Sh5.6, Uganda Ksh 5.3, and Canada Sh4.9 per Sh1,000. At the lowest end, European corridors such as Spain show almost negligible charges at Sh0.1, followed by Denmark at Sh1.2 and France at Sh1.9.
The study also highlights the impact of payout channels on the final cost to recipients. Mobile money operators, WorldRemit and commercial banks are among the most expensive ways to cash out remittances. In contrast, informal channels remain the cheapest, though they often come with risks and a lack of regulation.
Encashment, as defined in the report, refers to the process where a recipient converts a remittance into usable cash through banks, mobile money agents, or money transfer operator outlets in Kenya.
Overall, the findings point to a system where sending money into Kenya is relatively affordable, but where the final cost depends heavily on where the money comes from and how it is collected locally.
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