Kenya Breaks $5 Billion Remittance Barrier Despite Slower Growth

Kenya, Janaury 20,2026 -Kenya received an unprecedented inflow of funds from its citizens abroad in the 2024/25 financial year, with diaspora remittances surpassing the $5 billion mark for the first time. Data released by the Central Bank of Kenya (CBK) shows that total inflows reached $5.084 billion, up from $4.535 billion recorded in the previous financial year.

The milestone underscores the growing role of remittances as one of Kenya’s most reliable sources of foreign exchange, providing critical support to the country’s balance of payments and overall economic stability. However, the pace of growth has begun to ease, with remittances expanding by 12.1% during the year,slower than the rapid increases seen in the immediate post-pandemic period.

According to CBK figures, these inflows significantly strengthened Kenya’s secondary income account, which posted a surplus of $7.612 billion, an improvement of $432 million compared to the previous year. This performance helped cushion the economy against external pressures and supported macroeconomic stability.

Remittance inflows also played a role in stabilizing the Kenyan shilling. The currency showed marginal improvement over the course of the year, with the average exchange rate edging from KSh 129.47 per US dollar in the first quarter to KSh 129.34 by the final quarter.

In addition, strong foreign currency inflows contributed to a notable increase in Kenya’s official foreign exchange reserves. By the end of June 2025, reserves stood at $9.1 billion, equivalent to about five months of import cover, compared to $7.4 billion a year earlier.