Diapora remittances continued to soar as Kenyan households received Sh931.8 billion from relatives and friends abroad in the 12 months to May 2025. The figure highlights the diaspora’s growing role in supporting households and boosting the country’s economy.
The Kenya National Bureau of Statistics (KNBS), the Central Bank of Kenya (CBK), and Financial Sector Deepening Kenya (FSD Kenya) reported this in the 2025 Remittances Household Survey. The survey said remittances continue to be an important income source for hundreds of thousands of households across Kenya.
“The survey revealed that households in Kenya received a total of Sh931.8 billion in remittance inflows during the reference period, June 2024 to May 2025. Cash transfers made up 91.0 per cent, while in-kind inflows accounted for the remaining 9 per cent,” the report states.
The survey was described as the first comprehensive nationwide assessment of household remittance inflows and outflows. It found that the United States remains the biggest source of diaspora money sent to Kenya.
“The United States of America was the largest source of inflows, contributing 43.5 per cent of total remittances, followed by Germany and Australia,” the report says.
The findings come as diaspora remittances continue to rank among Kenya’s top sources of foreign exchange, often outperforming earnings from major export sectors.
The report also found that formal financial channels drive most remittance transfers.
“Formal channels remain the preferred mode for remittance transfers, with banks and mobile money platforms accounting for over 92.0 per cent of inflows,” the survey notes.
Beyond supporting the economy, remittances now provide crucial help to families dealing with higher living costs and economic uncertainty.
The survey found that households use remittances in different ways depending on their income levels and family situation.
“Among households surveyed, 42.3 per cent reported remittances as a supplementary source of income, 36.4 per cent as additional income, and 22.3 per cent as their main source of livelihood,” the report says.
Overall, the results show that for more than one in five households receiving remittances, support from relatives abroad serves as the primary way they survive.
Rural households emerged as the biggest beneficiaries of remittance inflows.
The survey found that 65.1 percent of households receiving remittances lived in rural areas, while 34.9 percent were in urban centres.
The report also pointed to a strong connection between remittances and financial inclusion in Kenya.
“A strong positive relationship was observed between financial inclusion and remittance receipt, with 82.5 per cent of recipients owning mobile money accounts and 55.4 per cent holding bank accounts,” the report states.
However, the survey noted that relatively few recipients put remittance money into investment products such as securities, microfinance accounts, or cryptocurrencies.
KNBS, CBK, and FSD Kenya said the findings offer important evidence for policymakers who want to use diaspora resources to drive economic growth and improve household welfare.
“The findings underscore the need for policies that reduce transaction costs, expand access to affordable formal transfer channels, and leverage remittances for education, health, and environmentally sustainable investments,” the report says.
The institutions added that the survey’s results should strengthen efforts to expand financial inclusion and maximize how much the Kenyan diaspora contributes to national development.
