(Nairobi) – Kenya’s economy continues to benefit significantly from money sent home by its diaspora community, with remittances reaching Ksh55.1 billion (approximately USD 422.9 million) in April 2025. This marks a 6.4% increase compared to Ksh51.8 billion (USD 397.3 million) received in April 2024, according to new figures released by the Central Bank of Kenya (CBK).
Over the 12-month period between May 2024 and April 2025, Kenyans living and working abroad sent home a cumulative total of Ksh651 billion (USD 4.997 billion). This represents a 12.1% rise from the previous year’s total of Ksh581.1 billion (USD 4.457 billion), demonstrating steady growth in remittance inflows and underlining their increasing importance to Kenya’s economic stability.
The United States remains the largest contributor to Kenya’s remittance inflows, accounting for 56% of all funds received. Other notable sources include the United Kingdom, Germany, Canada, and Gulf countries. The ongoing increase in remittances is attributed to the growing global Kenyan diaspora—now estimated to number over three million—as well as improved access to digital money transfer platforms, higher levels of financial literacy among migrant workers, and stable global employment conditions.
According to CBK, these remittance inflows have surpassed the foreign exchange earnings from Kenya’s traditional exports such as tea, coffee, and tourism. This shift highlights a growing reliance on diaspora contributions as a cornerstone of Kenya’s foreign exchange reserves and current account stability.
“Remittance inflows are providing much-needed support to household incomes, education, healthcare, and investment back home,” read a statement from the CBK. The central bank said it continues to monitor these inflows due to their broader impact on the country’s macroeconomic health.
However, this positive trend faces possible challenges. A recent proposal in the United States—Kenya’s largest source of remittances—aims to introduce a 5% tax on international money transfers to regions like Africa, Latin America, and South Asia. The policy, proposed by U.S. President Donald Trump, could discourage future transfers if passed, raising concerns in Kenya and other remittance-dependent countries.
Experts warn that such taxation policies could create ripple effects across economies that heavily rely on diaspora income. Kenya’s financial authorities and foreign policy institutions are closely watching these developments and their potential impact.
In response to the strategic importance of diaspora remittances, Kenya has been strengthening its engagement with Kenyans abroad. This includes offering dual citizenship, promoting investment opportunities, and building partnerships with digital banking platforms to make remitting easier and more efficient.
The State Department for Diaspora Affairs, a key agency under the Ministry of Foreign and Diaspora Affairs, continues to lead efforts to deepen this engagement. Established in 2022 under the directive of President William Ruto, the department is tasked with protecting the rights and welfare of Kenyans living abroad while facilitating their contributions to national development.
Recent initiatives include job placement programs and increased support services for Kenyans in the diaspora, such as document authentication and assistance for those in distress abroad. These efforts are part of a broader government strategy to unlock the economic potential of the diaspora and harness their contributions in a more structured and impactful way.