Kenyans Abroad Send KSh 54 Billion Home as 12-Months Inflows Rise to KSh 656 Billion
- Remittances from the Kenyan diaspora rose to a total of USD 5.08 billion (KSh 656.99 billion) in the 12 months leading to June 2025
- Kenya received USD 423 million (KSh 54.68 billion) in diaspora remittances in June 2025, marking a 13.8% increase from USD 372 million (KSh 48.06 billion) in June 2024
- Diaspora remittances are Kenya’s second-largest source of foreign exchange after exports, supporting the shilling, boosting foreign currency reserves, and helping to stabilise the current account deficit
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
Remittances from the Kenyan diaspora rose by 12.1% in the last 12 months, leading to June 2025.
Source: UGC
According to the latest disclosures from the Central Bank of Kenya (CBK), remittance inflows to Kenya totalled USD 423 million (KSh 54.68 billion) in June 2025.
This was a 13.8% increase from the USD 372 million (KSh 48.06 billion) that was recorded in June 2024.
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CBK further stated that the 12-month cumulative inflows to June 2025 increased by 12.1% to USD 5.08 billion (KSh 656.99 billion) compared to USD 4.54 billion (KSh 586.09 billion) in a similar period in 2024.
"The steady growth in remittance inflows remains a key source of foreign exchange earnings and continues to support the balance of payments," CBK noted.
How much did the Kenyan diaspora remit in May?
Kenya recorded its highest-ever monthly remittance inflow in May 2025, USD 440.1 million (KSh 56.9 billion), marking a 4.1% increase from April’s USD 422.9 million (KSh 54.7 billion).
Cumulative remittances for the 12 months to May 2025 rose by 11.6% to USD 5.03 billion (KSh 650.4 billion), up from USD 4.51 billion in the same period the previous year.
The United States remained the leading source, accounting for 57% of total inflows.
Kenya's foreign exchange reserves
One of the advantages of increased remittance inflows into the country is the sustainable foreign exchange reserves held by the CBK.
CBK reported that the usable foreign exchange reserves remained adequate at USD 11,201 million (KSh 1.448 trillion) (4.9 months of import cover) as of July 10.
CBK noted that this met the statutory requirement to endeavour to maintain at least 4 months of import cover.
In May, the CBK noted that remittances remain Kenya’s second-largest source of foreign exchange after exports and are instrumental in supporting the shilling.
However, potential threats such as a proposed 5% remittance tax by former US President Donald Trump and immigration crackdowns have raised concerns over the future of these critical inflows.
How did the Kenyan shilling perform?
In other news, the Kenyan shilling maintained relative stability against major global and regional currencies in the two weeks ending July 10, 2025, with the exchange rate against the US dollar holding steady at KSh 129.24.
The shilling also strengthened against the British pound, appreciating from KSh 177.52 on July 1 to KSh 175.87 on July 10.
Minor fluctuations were recorded against the euro and Japanese yen, while stability was observed in regional trade, with the shilling trading at consistent rates against the Ugandan, Tanzanian, Rwandese, and Burundian currencies.
This performance was supported by adequate foreign exchange reserves, buoyed by rising diaspora remittances, which continue to inject foreign currency into the economy and reinforce the shilling’s resilience.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
