Diaspora Remittances Hit a New High, Reaching KSh 54.7 Billion in June

Kenyan Diaspora Remittances Hit Historic High in June, Cementing Their Role in Economic Stability

Nairobi, Kenya – July 14, 2025

Kenyans living abroad have once again demonstrated their critical role in the country’s economic resilience, with new data from the Central Bank of Kenya (CBK) revealing that diaspora remittances reached an all-time monthly high of KSh 54.68 billion (approximately $423 million) in June 2025. This marks a significant 13.8% year-on-year increase, underlining the growing financial lifeline that expatriate Kenyans provide.

According to the CBK report, the United States remains the dominant source of these inflows, accounting for 57.8% of the total remittances. Europe and other regions contributed the remainder, reflecting Kenya’s globally dispersed and economically active diaspora community.

“These remittances are not just personal transfers—they are macroeconomic stabilizers,” noted CBK Governor Kamau Thugge. “They strengthen the shilling, shore up our foreign exchange reserves, and provide essential support to millions of households across the country.”

Remittances: Kenya’s Economic Lifeline

Diaspora remittances have overtaken tourism and most exports as the single largest source of foreign exchange for Kenya. Analysts say these inflows help cushion the economy from global shocks, especially as traditional sectors continue to recover from the effects of past disruptions—including the COVID-19 pandemic, global commodity volatility, and more recently, domestic political unrest.

The CBK noted that in June alone, remittances contributed meaningfully to Kenya’s foreign exchange reserves, helping maintain the delicate balance needed to manage imports, debt servicing, and currency fluctuations.

Beyond macroeconomic stability, these funds are directly sustaining household consumption, education, healthcare, and small business investments in counties across the country. In regions such as Kisii, Nyeri, Mombasa, and parts of Nairobi, families dependent on remittance income have reported better resilience amid rising inflation and declining job prospects.

A Call for Policy Innovation

As remittance volumes continue to rise, experts are urging the government to adopt more structured policies to maximize the development impact of diaspora contributions. This includes incentivizing diaspora investments in infrastructure, manufacturing, and housing, while also lowering transaction costs and improving financial literacy among recipients.

“The challenge now is to move from consumption-driven remittance use to investment-led engagement,” said Dr. Angela Mwangi, an economist with the Institute of Economic Affairs. “We need instruments—diaspora bonds, real estate funds, cooperative savings—that make it easy for Kenyans abroad to channel money into nation-building.”

The CBK has stated it will continue to monitor remittance trends closely amid shifting global economic conditions, including interest rate movements in the U.S. and Europe, which could influence migrant income levels and transfer behavior.

As the diaspora continues to stand tall as one of the country’s most dependable economic pillars, June’s record-high figures serve as a powerful reminder of the enduring bond between Kenyans abroad and the future of their homeland.