Kenya, 21 October 2025 - Even as global markets waver, Kenyans abroad are quietly powering the nation’s economy, with fresh Central Bank data showing remittance inflows ticking upward in September.
Kenyans living overseas sent home $419.6 million (Sh54.3 billion) during the month, a modest 0.2 per cent increase from August. While incremental, this rise underscores the resilience and reliability of remittances as a key source of foreign exchange and economic stability.
Between January and September 2025, total remittances reached Sh488.5 billion ($3.774 billion), representing a 3.2 per cent increase from the Sh473.5 billion ($3.658 billion) recorded during the same period in 2024.
In its weekly bulletin, the CBK emphasized the continued importance of these inflows:
“Remittance inflows to Kenya totalled $419.6 million in September 2025. They remain a key source of foreign exchange earnings and continue to support the balance of payments.”
However, the rate of growth has slowed significantly compared to the 17.2 per cent surge observed over the same period last year. The deceleration comes amid the return to office of U.S. President Donald Trump, whose administration has reinstated strict anti-immigration measures and issued threats of mass deportations—policies that could be affecting remittance flows.
The United States remains the largest source of remittances to Kenya. But starting January 2026, a new U.S. law will impose a 3.5 per cent excise tax on money transfers. Analysts estimate the levy could reduce remittances to Kenya by approximately $131.46 million (Sh17 billion) annually.
Monthly inflows peaked in May at $440.1 million (Sh56.96 billion), followed by January ($427.4 million or Sh55.3 billion) and August ($426.1 million or Sh55.1 billion). These spikes often coincide with back-to-school seasons, highlighting the critical role diaspora funds play in supporting education and household expenses.
The consistency and magnitude of remittance inflows continue to anchor Kenya’s broader economic resilience, not only as a form of family support but also as a crucial pillar of the country’s foreign exchange earnings.
The CBK attributes this economic stability to a well-diversified mix of inflows, including diaspora remittances, tea and horticulture exports, as well as renewed investor confidence following Kenya’s recent credit rating upgrade by S&P Global Ratings.
In its latest market perceptions survey, the CBK reported growing optimism about the Kenyan shilling, with 88 per cent of banks and 87 per cent of non-bank institutions expecting the currency to remain stable or strengthen in the near term.