Cash wired home by Kenyans living and working abroad grew by Sh15 billion during the nine months ended September to $3.774 billion (Sh488.5 billion), a 3.2 percent rise from the $3.658 billion (Sh473.5 billion) recorded in a similar period last year.
New data from the Central Bank of Kenya shows that Kenyans in the diaspora sent home $419.6 million (Sh54.3 billion) in September, adding to the cumulative $3.355 billion (Sh434.2 billion) remitted during the eight months to August.
“Remittance inflows to Kenya totalled $419.6 million in September 2025… They (the remittance inflows) remain a key source of foreign exchange earnings and continue to support the balance of payments,” wrote the CBK in its weekly bulletin release.
The 3.2 percent growth witnessed in the current review period is, however, slower compared to the 17.2 percent jump recorded in a corresponding period last year.
The slowdown coincided with the assumption of office of US President Donald Trump, who came in with a raft of radical anti-immigrant policies, completely laden with threats of mass deportation.
The US, which accounts for the largest portion of diaspora remittances into Kenya, has also enacted legislation that introduces a 3.5 percent excise tax on such cash transfers starting January next year.
A recent Business Daily analysis showed that once the legislative proposal takes effect, the Trump regime will take about $131.46 million (Sh17 billion) in remittance excise tax from Kenya.
The highest monthly inflows recorded so far this year were in May, when they stood at $440.1 million (Sh56.96 billion), followed by January and August at $427.4 million (Sh55.3 billion) and $426.1 million (Sh55.1 billion) respectively, periods that coincided with heightened back-to-school activity.
This affirmed the expected momentum as Kenyans abroad wired cash to finance education bills for their kin back home who were reopening school.
Aside from the US, other top sources of remittances to Kenya include Germany, Australia, the United Arab Emirates (UAE), Tanzania, and Canada.
Since 2015, remittances have remained the largest source of foreign cash inflows into Kenya, ahead of tourism, foreign direct investment (FDI), and the export of agricultural products such as tea and coffee.
The money sent by Kenyans living abroad goes to support relatives and fund investments in real estate, among other sectors of the economy.
The Kenya Kwanza administration has been keen to send more Kenyans to work in foreign countries amid increased unemployment in the domestic market.
