Kenyans Abroad Sent Home KSh932 Billion — But Most of It Went to Food as Families Battle Rising Cost of Living
A staggering KSh931.8 billion sent home by Kenyans living abroad over the past year was largely used to put food on the table and meet basic household needs, according to a landmark report released by the Kenya National Bureau of Statistics (KNBS).
The findings, unveiled on Tuesday during the launch of the 2025 Remittances Household Survey Report, paint a vivid picture of how diaspora earnings have become a critical lifeline for millions of Kenyan families grappling with the high cost of living.
The report, the first nationwide household survey on remittances conducted in Kenya, revealed that 73.1 per cent of households receiving money from relatives abroad spent the funds on food and household goods, making it the single largest use of diaspora remittances.
The survey highlights the growing dependence of many families on relatives working overseas, with much of the money being channelled towards daily survival rather than long-term investments or wealth creation.
“Food and household goods emerged as the leading use of remittance inflows, accounting for 73.1 per cent of recipient households,” the report states.
Education was identified as the second-largest expenditure category, with 31.4 per cent of recipients using remittances to pay school-related expenses, underlining the crucial role diaspora funds play in supporting learning and human capital development.
Medical expenses followed closely at 23.9 per cent, while 19.8 per cent of households spent the money on clothing. Rent payments and household utilities accounted for 9.3 per cent of the reported expenditure.
Investment Receives a Tiny Share
Despite remittances reaching record levels, the survey found that only a small fraction of the money was directed towards productive investments.
According to the findings, just 8 per cent of recipients used the funds for farming activities, while 3.1 per cent channelled the money towards debt repayment.
Construction projects accounted for 2.6 per cent of remittance spending, while investment in real estate registered the lowest share at 2.2 per cent, suggesting that immediate household needs continue to outweigh long-term financial planning for many families.
The report comes amid continued economic pressure on households, with many Kenyans facing elevated food prices, increased utility costs, and broader financial challenges.
Cash Transfers Dominate
KNBS reported that total remittance inflows between June 2024 and May 2025 amounted to KSh931.8 billion, comprising KSh848.3 billion in cash remittances and KSh83.5 billion in non-cash support, including goods and other forms of in-kind assistance.
Cash transfers overwhelmingly dominated the inflows, accounting for 91 per cent of the total value received by households, compared to just 9 per cent for in-kind remittances.
The survey further found that women were the primary beneficiaries of remittances, receiving 60.3 per cent of the funds, while men accounted for 37.9 per cent of recipients.
Cost of Sending Money Remains a Major Concern
While remittances continue to play a significant role in supporting Kenyan households, the report identified high transaction costs as the biggest challenge facing users.
A majority of respondents, 67.3 per cent, cited expensive transfer charges as a major obstacle when sending or receiving money internationally.
Other concerns raised included lengthy transfer times, long distances to service providers, limited accessibility, lack of privacy, unfavourable exchange rates, security concerns, and stringent Know Your Customer (KYC) requirements.
The report also revealed that Kenya recorded KSh41.1 billion in remittance outflows during the same period, highlighting the country’s increasing integration into global financial networks.
With remittances now among Kenya’s most important sources of foreign exchange, the findings underscore the growing importance of the diaspora in sustaining household livelihoods, funding education, supporting healthcare needs, and cushioning families from economic shocks.
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