Kenya’s diaspora remittances declined by 1.3 per cent in the 12 months to August 2026, driven largely by reduced inflows from the United States and Saudi Arabia, although the Central Bank of Kenya (CBK) says the trend has shown signs of recovery in recent months.
CBK Governor Kamau Thugge disclosed the figures on Thursday, October 8, during a Monetary Policy Committee (MPC) meeting, noting that remittances remained resilient despite the overall decline.
“The remittances have remained resilient, although from the twelve months to August 2026 we saw a decline of 1.3 per cent. In the last two months we have seen some recovery, and between January and August the decline was -0.7,” Thugge said.
The figures highlight the changing pattern of money sent home by Kenyans living and working abroad, with reduced inflows from two major remittance sources weighing on overall performance.
US and Saudi Arabia Drive the Decline
Thugge attributed the decline largely to lower remittance inflows from the United States and Saudi Arabia, both important sources of foreign currency for Kenya.
The United States remains Kenya’s largest source of diaspora remittances, accounting for approximately 43.5 per cent of the money sent to Kenyan households from abroad.
Saudi Arabia has also become an important source of remittances, particularly as more Kenyans seek employment opportunities in the Gulf region. However, changes in labour laws and policies affecting foreign workers have added uncertainty to the flow of money from the country.
Meanwhile, the decline in US remittances comes amid tighter immigration enforcement since President Donald Trump returned to office in January 2025.
Some Kenyans have been deported from the United States in recent months, raising questions about the potential impact on household incomes and money sent home.
However, the CBK governor did not directly link the fall in US remittances to deportations, meaning their contribution to the decline remains unconfirmed.
Remittances Expected to Rise in Coming Years
Despite the recent slowdown, Kenya’s diaspora remittances are projected to increase over the next two years.
The projections indicate that inflows could rise from approximately US$5.037 billion (Sh653.8 billion) in 2025 to US$5.073 billion (Sh658.5 billion) in 2026, before reaching US$5.22 billion (Sh677.4 billion) in 2027.
The anticipated growth would reinforce the importance of Kenyans living abroad as a source of foreign exchange and support for households back home.
Remittances help families meet expenses such as school fees, rent, healthcare and other household needs, while also contributing to foreign currency inflows into the economy.
CBK Says Shilling Remains Stable
Thugge said diversified foreign exchange inflows, investor confidence and adequate foreign exchange reserves had helped keep the Kenyan shilling stable despite uncertainty in the global economy.
“Despite elevated global uncertainties, the Kenyan shilling has remained stable, supported by diversified foreign exchange inflows, confidence in the economy and adequate foreign exchange reserves,” he said.
The governor added that the country’s foreign exchange reserves continued to provide adequate cover and a buffer against short-term economic shocks.
The latest figures suggest that while diaspora remittances remain an important source of support for Kenya’s foreign exchange market, changes in major overseas labour markets could influence the amount of money flowing into the country in the months ahead.
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