By Benadeta Mwaura - Reporter
Kenya, June 23, 2026 -Thousands of Kenyan families that rely on money sent home by relatives working abroad are facing increased financial pressure following a decline in diaspora remittances, highlighting the vulnerability of many households to global economic shocks.
According to the latest data from the Central Bank of Kenya (CBK), diaspora remittances fell to KSh51.4 billion ($397.8 million) in April 2026, down from KSh54.4 billion ($420.8 million) recorded in March, representing an 11.7% month-on-month decline.
The drop comes at a time when many Kenyan households are already grappling with rising living costs, school fees, healthcare expenses, and food inflation.
The decline has largely been attributed to economic disruptions affecting Kenyans working abroad, particularly in the Gulf region, where ongoing geopolitical tensions have impacted employment opportunities and increased the cost of living.
According to the report, fuel shortages linked to tensions in the Middle East have pushed up operational costs and disrupted economic activity across the region, reducing the disposable income available for migrant workers to send home.
The Gulf remains one of Kenya's most important remittance corridors, hosting more than 400,000 Kenyan workers in countries such as Saudi Arabia, the United Arab Emirates, and Qatar. Many are employed in construction, hospitality, and domestic services — sectors that have faced disruptions amid regional instability.
The decline is being felt directly by households that depend on remittances to meet everyday needs.
"We are suffering. Everything is expensive now — from food and transport to cooking gas. My business earnings cannot keep up," said Agnes Mumbi, a food vendor in Nairobi, describing the financial strain facing many families.
For many households, remittances help cover critical expenses including food, rent, school fees, and medical bills.
A recently released household remittances survey by the Kenya National Bureau of Statistics (KNBS), CBK, and Financial Sector Deepening Kenya found that Kenyan households received an estimated KSh931.8 billion in remittances between June 2024 and May 2025.
The survey showed that 73.1% of recipient households used the money primarily to purchase food and household goods, underlining the role remittances play in supporting basic livelihoods.
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Despite the monthly decline, diaspora remittances remain one of Kenya's largest sources of foreign exchange, alongside tourism, tea, and horticulture exports.
The CBK noted that cumulative remittances over the 12 months to April 2026 stood at approximately KSh653 billion, although growth slowed significantly to just 1.1 percent compared with previous years.
The United States continues to be the largest single source of remittances to Kenya, while Gulf countries remain a crucial secondary source.
Recent survey findings have also revealed that the contribution of the diaspora may be significantly larger than previously captured. The KNBS Household Remittances Survey estimated total inflows at KSh931.8 billion, including informal cash transfers and in-kind support that do not appear in official CBK statistics.
Sustained declines in remittance inflows could have broader implications for both household welfare and the national economy.
Reduced remittances could lower household consumption, weaken spending power, and affect sectors that depend heavily on consumer demand. They could also reduce foreign exchange inflows at a time when Kenya continues to face debt servicing obligations and external financing pressures.
The World Bank has already lowered Kenya's 2026 economic growth forecast, citing the effects of global geopolitical tensions and their impact on trade, energy prices, and financial flows.
While remittances remain a critical lifeline for millions of Kenyans, the latest figures highlight the growing exposure of local households to economic events occurring far beyond the country's borders.
As global uncertainty persists and living costs continue to rise both in Kenya and abroad, families that depend on support from relatives overseas may face increasingly difficult financial choices in the months ahead.