Kenya recorded a 3.8 percent drop in diaspora remittances in January 2026, according to the Central Bank of Kenya’s (CBK) Weekly Bulletin released on February 13.
Inflows fell from Ksh55.12 billion in January 2025 to Ksh53.08 billion in January 2026.
Despite this monthly decline, cumulative remittances over the past 12 months rose modestly. Total inflows increased by 1.2 percent, climbing from Ksh639.55 billion to Ksh647.75 billion compared to the same period a year earlier.
Remittances as a Lifeline
Diaspora remittances remain one of Kenya’s most reliable sources of foreign exchange. They support household consumption, strengthen the balance of payments, and provide a steady cushion against economic shocks.
CBK data show that remittance inflows to Kenya reached USD 411.3 million in January 2026, down from USD 427.4 million in January 2025. However, cumulative inflows for the 12 months to January 2026 rose to USD 5,021 million, compared to USD 4,960 million a year earlier.
A Decade of Growth
Over the past decade, monthly remittances have grown at a compound annual growth rate (CAGR) of 11.6 percent, rising from USD 137.5 million in January 2016 to USD 411.3 million in January 2026. Analysts attribute this growth to three key factors: recovery in the global economy, a rising Kenyan diaspora population, and advances in technology that have made money transfers faster and more accessible.
Stable Shilling, Strong Buffers
The Kenyan shilling remained stable during the review period, closing at Ksh129.02 per US dollar on February 12, 2026—unchanged from the previous week. The currency also showed minimal movement against other major international currencies, including the sterling pound and the euro.
Foreign exchange reserves stood at approximately Ksh1.61 trillion as of February 12, equivalent to 5.4 months of import cover. This figure is comfortably above the statutory requirement of four months, signaling that Kenya has sufficient buffers to protect the shilling against external pressures.
Rising Forex Reserves
Forex reserves have grown significantly, increasing by 33.2 percent to USD 12.5 billion in February 2026, up from USD 9.4 billion in February 2025. For six consecutive months, reserves have remained above the statutory minimum of four months of import cover. The increase is largely attributed to reduced debt service obligations, stable currency performance, and higher foreign capital inflows.
Cytonn Investments noted in its Focus of the Week: Kenya Currency and Interest Rates Review 2026 that reserves are expected to remain supported by improving diaspora remittances and rising agricultural exports, aided by government subsidies on key inputs such as fertilizers. However, the firm cautioned that elevated debt levels could put pressure on reserves as repayments fall due.
