Kenya’s diaspora remittances climbed to a record US$ 5.04Bn (KSh 650.16Bn) in 2025, crossing the US$ 5Bn threshold for the first time as large monthly inflows persisted through most of the year.
- •The milestone cements remittances as one of Kenya’s most reliable foreign-exchange sources and comes as the government moves to formalise and deepen diaspora inflows under a new 2025–2030 Diaspora Investment Strategy.
- •The 2025 outcome marked a 1.9% year-on-year increase from US$ 4.95Bn in 2024, extending a two-decade expansion that has lifted annual remittances nearly 15-fold since 2004, with only 2009 recording a contraction.
- •More than half of all remittance inflows since records began have been received after 2020, pointing to a structural shift rather than a short-term surge.
Several 2025 months ranked among the strongest ever recorded. May 2025 delivered US$ 440.08Mn, October 2025 posted US$ 438.79Mn, and December 2025 closed at US$ 435.50Mn, the fifth-highest monthly inflow on record.
In total, six of the ten highest monthly remittance inflows in Kenya’s history occurred in 2025, highlighting consistency rather than reliance on one-off spikesMomentum held firm through most of the year despite short-term volatility. October inflows rose 0.37% year on year, while November dipped 8.3% to US$ 388.3Mn before a strong December finish. Even with the November slowdown, rolling inflows remained anchored above US$ 5Bn, signalling resilience rather than a break in trend.
By October, cumulative inflows had reached US$ 4.21Bn, the highest January–October total on record and up 3.3% from the same period in 2024. By the end of November, year-to-date inflows stood at US$ 4.60Bn, leaving December to formally seal the record year.
The long-run trajectory shows clear step-ups. Kenya crossed US$ 1Bn in annual remittances in 2012, US$ 2Bn in 2018, US$ 3Bn in 2020, US$ 4Bn in 2022, and now US$ 5Bn in 2025. While growth rates have cooled from the sharp surges seen in 2021 and 2024, the base level of inflows has shifted decisively higher.
The Place of Remittances in Kenya's Future
Policy makers increasingly view remittances as more than household support. The flows now rank alongside, and at times above, exports and tourism as a foreign-exchange anchor, helping stabilise the balance of payments during periods of weak export receipts and tight external financing conditions. The Central Bank has repeatedly cited remittances as a key buffer for external liquidity.
The government’s Diaspora Investment Strategy (2025–2030) builds on this foundation. The plan attributes recent growth to an expanding diaspora, wider use of formal and digital transfer channels, and increased competition among licensed money transfer operators. The United States remains the largest source, accounting for roughly half of inflows, alongside rising contributions from Europe and the Middle East.
Looking ahead, the strategy shifts focus from growth alone to durability and deployment. Targets include lowering remittance costs toward the global 3% benchmark by 2030, strengthening consumer protection, and converting part of the steady monthly inflows into long-term capital. Proposed instruments include a diaspora bond, pooled investment vehicles, and improved access to capital markets and regulated savings structures.
Priority sectors for diaspora capital include housing, infrastructure, manufacturing, technology, healthcare, renewable energy, and agriculture. A proposed diaspora investment agency would coordinate engagement and reduce fraud risks that have previously undermined confidence.
Execution risks remain. Past diaspora initiatives have faced delays, remittance costs across key corridors remain above global targets, and global labour market conditions could tighten. Sustaining inflows above US$ 5Bn will depend on follow-through rather than policy intent alone.
After two decades of steady expansion, Kenya’s diaspora remittances have entered a new range above US$ 5Bn a year. Monthly inflows remain large, frequent, and broad-based. Whether the next phase converts this strength into durable investment will define the remittance story through the rest of the decade.
