Kenyans living and working abroad have once again proven to be a vital pillar of the country’s economy, after sending home a record-breaking Ksh 656.9 billion (USD 5.08 billion) between August 2024 and July 2025.
According to the latest Central Bank of Kenya (CBK) report, this amount reflects an 11.1% increase compared to the Ksh 590.6 billion (USD 4.57 billion) sent during the same period in 2024. The data reaffirms that diaspora remittances remain one of Kenya’s most dependable sources of foreign exchange, cushioning the economy against global shocks and supporting household livelihoods across the country.
Monthly Inflows and Currency Stability
In July 2025 alone, Kenyans abroad remitted USD 410.1 million (Ksh 53.0 billion). Although this represented a slight 1% decline compared to USD 414.3 million (Ksh 53.5 billion) in July 2024, the cumulative 12-month growth demonstrates a strong upward trend.
The CBK highlighted that these inflows are playing a critical role in maintaining foreign exchange reserves, which stood at USD 11.1 billion (Ksh 1.43 trillion) in mid-August 2025. These reserves are enough to cover 4.9 months of imports, surpassing the statutory minimum of 4 months required for economic stability.
Additionally, remittances have directly supported the stability of the Kenyan shilling, which traded at Ksh 129.24 per USD as of August 14, 2025. This resilience has been strengthened not only by remittances but also by increased inflows into government securities and rising investor confidence.
How Kenyans Abroad Use Remittances
Beyond macroeconomic impact, diaspora remittances are a lifeline for many Kenyan families. According to CBK, a large portion of the money is directed towards:
- Food and daily household expenses
- School fees and education support
- Healthcare services
- Real estate and small-scale investments
These inflows not only uplift families but also fuel broader domestic consumption and private investment, both of which are vital to Kenya’s economic growth.
Government Launches Remittance Household Survey
To better understand the scale and usage of these funds, the government has rolled out a Remittance Household Survey (RHS). The programme will see enumerators visit households receiving funds from abroad to gather detailed information on amounts received, sources, and usage.
This data will help policymakers strengthen diaspora engagement strategies, improve financial inclusion, and design better policies for investment opportunities targeting remittance inflows.
Monetary Policy Context
The surge in remittances comes at a time when the CBK is easing monetary policy. In August 2025, the regulator cut the base lending rate from 9.75% to 9.5% to encourage more private sector borrowing while keeping inflation expectations in check.
With diaspora inflows providing additional economic support, the CBK is optimistic that Kenya will continue to sustain stable foreign exchange markets, improved economic resilience, and stronger household financial security.
Why This Matters
The record-breaking Ksh 656.9 billion diaspora remittances underscore the growing importance of Kenyans abroad in nation-building. Beyond personal support for families, these funds continue to be a cornerstone of economic stability, currency strength, and development financing.
As the government deepens efforts to engage the diaspora community, analysts project that remittances will grow even further in the coming years, especially with more Kenyans moving abroad for work and study opportunities.
