Nairobi, July 15, 2025 – Kenyans living abroad sent home a record-breaking KSh 325 billion (approximately USD 2.51 billion) in remittances during the first six months of 2025, marking a significant boost to Kenya’s economy, according to the Central Bank of Kenya (CBK).
This surge, reported by Business Daily and NTV Kenya, reflects a robust 13.8% increase in June 2025 alone, with inflows reaching USD 423 million (KSh 54.68 billion), up from USD 372 million (KSh 48.06 billion) in June 2024.
The United States remains the largest source of remittances, contributing 57% of the total inflows in May 2025, driven by easing inflation and increased disposable income among Kenyan migrants.
The CBK notes that these funds, primarily used for household needs, healthcare, education, and real estate investments, have solidified remittances as Kenya’s top source of foreign exchange, surpassing tourism and agricultural exports like tea and horticulture.
The consistent growth in remittances has supported Kenya’s foreign exchange reserves, stabilizing the Kenyan shilling, which hit a low of KSh 161 to the dollar in January 2025. The CBK reported cumulative inflows of USD 4.645 billion (KSh 593 billion) for the 12 months ending August 2024, a 12.7% rise from USD 4.120 billion (KSh 529 billion) the previous year. This financial influx has narrowed Kenya’s current account deficit, dropping from 5.1% of GDP in 2022 to 4% in 2023, with further improvements expected.
However, challenges persist. The average cost of sending USD 200 to Kenya remains high at 9.15%, exceeding the UN’s Sustainable Development Goal target of 3% and the sub-Saharan Africa average of 7.9%. Concerns have also been raised about potential government policies, such as a proposed tax on remittances for the Housing Fund, which could discourage inflows. Critics argue that weak policies and the use of informal channels like cryptocurrency may underreport actual remittance figures.
Kenya leads East Africa in diaspora remittances, receiving USD 4.8 billion (KSh 537.6 billion) in 2024, far ahead of Somalia (USD 1.73 billion) and Uganda (USD 1.49 billion), according to World Bank data. The Kenya Diaspora Policy 2024 aims to further harness these funds by reducing costs and incentivizing investments, aligning with the government’s goal of reaching KSh 1 trillion in annual remittances by 2027.
Posts on X reflect public sentiment, with users like @DrRoselynAkombe praising the diaspora’s USD 4.8 billion contribution in 2024 as a vital safety net for families, while @BiancaNaom1 highlighted a record USD 5.084 billion (KSh 660 billion) for the 2024/2025 period, though these figures require further verification.
