Kenya’s diaspora remittances experienced a slight dip in February 2025, with total inflows amounting to Ksh 49.3 billion. This marks a temporary slowdown in monthly remittances; however, overall foreign inflows over the past year have shown a strong upward trajectory.
According to the latest data from the Central Bank of Kenya (CBK), cumulative remittances for the 12 months leading up to February 2025 increased by 14.5 percent. The total inflows for the period stood at $4.96 billion, a significant rise compared to the $4.33 billion recorded in the same period in 2024.
“The remittance inflows continue to support the current account and the foreign exchange market. The US remains the largest source of remittances to Kenya, accounting for 53 percent in February 2025,” noted the CBK in its report.
Remittances have long been a key pillar of Kenya’s economy, providing crucial support for household incomes, investment, and economic stability. The steady increase in annual inflows underscores the continued commitment of Kenyans in the diaspora to supporting their families and contributing to national economic growth.
Despite the decline in February’s figures, analysts believe that this does not signal a long-term trend but rather reflects temporary factors such as seasonal variations or economic conditions in key remittance-sending countries. The US, which remains the top source of remittances, continues to play a crucial role in sustaining the overall upward trend.
The increase in annual remittances has had a positive impact on Kenya’s foreign exchange reserves, helping to stabilize the local currency amid fluctuating global financial conditions. As a result, the CBK remains optimistic that remittances will continue to provide essential support to the economy in the coming months.
As the Kenyan government explores ways to further harness diaspora resources, policies aimed at enhancing the ease of remittance transactions and incentivizing diaspora investment could further bolster these inflows.
With diaspora remittances remaining a key driver of economic resilience, the focus now shifts to sustaining this growth trend and ensuring that these funds continue to support economic development across the country.
