Money sent home by Kenyans living and working abroad declined by approximately KSh1.08 billion in October 2026 compared with the same month last year, according to the latest figures released by the Central Bank of Kenya (CBK).
The country received US$430.5 million (approximately KSh55.95 billion) in diaspora remittances during October, down from US$438.8 million, equivalent to about KSh57.03 billion, recorded in October 2025.
The figures represent a 1.9 per cent annual decline, highlighting a slowdown in one of Kenya’s important sources of foreign exchange earnings.
In its weekly bulletin released on Friday, November 13, CBK reported that the reduction was also reflected in the cumulative amount of money sent into the country over the 12 months to October 2026.
Despite the decline, the Central Bank maintained that diaspora remittances continue to play an important role in supporting Kenya’s external financial position.
Cumulative diaspora remittances decline by KSh7.67 billion
The latest CBK data shows that Kenya’s cumulative remittance inflows over the 12 months to October 2026 declined by 1.1 per cent.
The country received US$5.023 billion during the period, compared with US$5.082 billion recorded over the corresponding 12 months in 2025.
The difference amounts to approximately US$59 million, representing a reduction of about KSh7.67 billion when converted at the exchange rate used in the supplied estimates.
In local currency terms, the cumulative inflows were approximately KSh653 billion, compared with about KSh661 billion in the previous corresponding period.
The figures suggest that the slowdown was not limited to October, as the total amount received over the preceding 12 months also remained below the previous year’s level.
However, the decline does not mean that Kenyans abroad have stopped supporting their families or that remittances have ceased to be a major source of foreign exchange.
The country continues to receive billions of dollars annually through money transfers from citizens working and living in different parts of the world.
Why diaspora remittances matter to Kenya’s economy
Money sent home by Kenyans living abroad plays an important role in the country’s economy.
Many households depend on these transfers to meet everyday expenses, including school fees, rent, food, healthcare and other family needs.
Some recipients also use the money to invest in property, establish businesses, purchase land or support agricultural activities.
Beyond individual households, remittances contribute to Kenya’s foreign exchange earnings and help support the country’s balance of payments.
The CBK has consistently recognised the importance of these inflows, which are received through commercial banks and other authorised international money transfer providers.
In its November 13 bulletin, the Central Bank reiterated that remittances remain a key source of foreign exchange earnings and continue to support the balance of payments.
The latest decline therefore comes at a time when policymakers and financial market participants continue to monitor the country’s foreign currency position.
Kenyan shilling remains stable against the US dollar
Despite the reduction in diaspora inflows, the Kenyan shilling maintained a relatively steady position against the US dollar during the week ending November 12, 2026.
According to the CBK bulletin, the local currency exchanged at KSh129.96 against the US dollar on November 12.
This was unchanged from the rate recorded on November 5, indicating stability against the American currency over the period under review.
The exchange rate is an important indicator for businesses, importers, exporters and households that depend on foreign currency transactions.
A stable shilling can help businesses plan their import costs and foreign currency payments, although exchange rates remain subject to movements in the international and domestic financial markets.
The CBK figures do not establish that the decline in remittances caused the shilling’s stability or that the two developments were directly connected.
Foreign exchange reserves stand at KSh1.9 trillion
Meanwhile, Kenya’s foreign exchange reserves stood at US$14.605 billion as of November 12, 2026, equivalent to approximately KSh1.9 trillion.
The reserves provided 5.9 months of import cover, remaining above the Central Bank’s statutory requirement of at least four months of import cover.
However, the latest figure represented a decline from the US$14.699 billion recorded on November 5.
This means the country’s reserves reduced by US$94 million over the week, equivalent to approximately KSh12.2 billion.
Foreign exchange reserves are important because they provide the country with a financial buffer for meeting external obligations, supporting confidence in the economy and managing potential pressures on the foreign exchange market.
The 5.9 months of import cover reported by CBK indicates that Kenya’s reserves remained above the statutory minimum during the period.
What the latest CBK figures mean for Kenyans
The October remittance figures provide an indication of how money transfers from Kenyans abroad performed compared with the previous year.
Although the 1.9 per cent decline is relatively modest, the reduction in the 12-month cumulative total shows that inflows were also lower over the longer comparison period.
For households that rely on financial support from relatives overseas, remittances remain an important source of income.
For the wider economy, they continue to contribute to foreign exchange availability and support the balance of payments.
The latest figures do not establish the reasons behind the decline, and further data would be needed to determine whether the reduction is temporary or part of a longer-term trend.
For now, the CBK continues to monitor remittance flows alongside exchange rates and foreign exchange reserves as key indicators of Kenya’s external financial position.
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