Kenya’s economy continues to draw quiet strength from its citizens abroad, with new data showing that diaspora remittances rose slightly in September even as global markets remained uncertain.
Figures from the Central Bank of Kenya (CBK) show Kenyans abroad sent home 419.6 million dollars (Sh54.3 billion) during the month, a small but steady increase of 0.2 per cent from August.
The consistency of these inflows underscores how deeply the diaspora has become woven into Kenya’s financial stability, offering not just family support but also vital foreign exchange.
Over the past year, Kenyans living overseas sent home $5.08 billion (Ksh 657.9 billion), up 7.6 per cent compared to a similar period in 2024.
The CBK expects inflows to reach $5.24 billion (Ksh 678.7 billion) by the end of this year, and to climb further to $5.56 billion (Ksh 720.1 billion) in 2026.
The United States remains the single largest source of these funds, with a growing share also coming from Europe and the Gulf.
According to WorldRemit, most Kenyans abroad continue to send money to support education, healthcare, and family expenses. However, an increasing number are investing in land, housing, and small businesses back home.
Beyond helping households meet their needs, remittances have been crucial in keeping the Kenyan shilling steady amid pressure on global currencies.
The CBK attributes this stability to diversified inflows from remittances, tea and horticulture exports, and renewed confidence in the economy following Kenya’s recent credit rating upgrade by S&P Global Ratings.
CBK’s latest market survey reveals optimism about the exchange rate, with 88 per cent of banks and 87 per cent of non-bank institutions expecting the shilling to remain stable or strengthen.
“This will be supported by robust foreign exchange inflows from tourism, diaspora remittances and exports, matched demand and supply of forex in the market and adequate foreign exchange reserves,” CBK Governor Kamau Thugge said.
Adding;
“They (remittances) remain a key source of foreign exchange earnings and continue to support the balance of payments.”
The CBK projects the country’s current account deficit to stand at 1.7 per cent of GDP in 2025 and 1.8 per cent in 2026. The deficit will be fully financed by financial inflows, resulting in an overall balance of payments surplus of $674 million (Ksh 87.3 billion) in 2025 and $229 million (Ksh 29.7 billion) in 2026.
Kenya’s foreign exchange reserves are expected to grow steadily, from $10.09 billion (Ksh 1.31 trillion) in 2024 to $10.77 billion (Ksh 1.39 trillion) in 2025, and $10.99 billion (Ksh 1.42 trillion) in 2026. As of October 15, reserves had risen to $12.07 billion (Ksh 1.56 trillion), providing 5.3 months of import cover well above the statutory minimum of four months.
Last year, Kenya recorded its highest-ever remittance inflows at Ksh 666.7 billion, surpassing 2023’s Ksh 586 billion. This solidified remittances as the country’s largest source of foreign exchange, overtaking earnings from traditional sectors such as tea, horticulture and tourism.
To deepen understanding of how these funds move and are used, the CBK has partnered with the Kenya National Bureau of Statistics (KNBS) and Financial Sector Deepening (FSD) Kenya to conduct the first-ever Remittances Household Survey (RHS).
“With remittance transactions growing in importance, accurate and comprehensive data must be collected on remittance flows,” CBK said.
Adding;
“The 2025 RHS therefore represents a major step towards improved data on remittances and will collect valuable information on the amount, uses, cost and the challenges that will inform policy formulation including those related to supporting the remittance flows.”
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