Kenya’s diaspora remittance inflows totaled USD 435.5 million in December 2025, down from USD 445.4 million in December 2024, representing a 2.2% decline.
The slowdown in December capped the year, reflecting global economic pressures and seasonal variations in transfers.
Annual Remittances Edge Up to USD 5.04 Billion
Despite the December dip, total remittances for 2025 increased by 1.9% to USD 5,037 million, compared to USD 4,945 million in 2024, according to the Central Bank of Kenya (CBK). This growth underscores the resilience of Kenya’s diaspora community, whose contributions remain a source of foreign exchange earnings and support for the country’s balance of payments.
North America Dominates Remittance Sources
Throughout 2025, North America remained the largest contributor, averaging over USD 240 million monthly. The region peaked in October 2025 at USD 262.6 million, highlighting its central role in Kenya’s remittance ecosystem.
- Strong months: January (USD 243.3 million), May (USD 251.4 million), October (USD 262.6 million)
- Weak months: February (USD 215.6 million), November (USD 235.4 million)
Europe and Rest of World Contributions
- Europe consistently contributed between USD 70–82 million monthly, with the highest inflow in October (USD 82.4 million).
- The Rest of World category ranged from USD 84–113 million, peaking in January (USD 113 million).
Together, these regions ensured monthly remittances remained above USD 380 million, providing stability despite global financial volatility.
Monthly Trends in 2025
Kenya’s remittance inflows showed seasonal fluctuations:
- Highest months: May (USD 440.1 million) and October (USD 438.8 million)
- Lowest months: February (USD 382.2 million) and November (USD 388.3 million)
This pattern reflects both global economic conditions and diaspora transfer cycles tied to family obligations, education, and festive seasons.
Why Remittances Matter for Kenya’s Economy
Remittances are money sent home by Kenyans abroad, often through banks and authorized service providers. They finance household consumption, education, healthcare, and small business investments. More importantly, they are a pillar of economic growth, providing foreign exchange that stabilizes the shilling and supports Kenya’s external accounts.
With mobile money integration and digital channels expanding, remittances are expected to remain resilient, even amid global uncertainties.
Outlook: Resilience Amid Global Challenges
While December’s decline highlights exposure to global financial conditions, the annual growth trend signals strength. Analysts expect remittances to continue playing a stabilizing role in Kenya’s economy, especially as the diaspora community deepens ties with local financial systems and mobile money platforms.
