There is an emerging shift in the diaspora remittances to Kenya, according to the Central Bank of Kenya’s January 2025 data. While traditional sources like the United States remain dominant, emerging regions such as the Gulf and Australia are becoming increasingly important. 

At the same time, challenges in Europe and Africa highlight the need for targeted strategies to support the diaspora and sustain remittance flows. The United States remains the largest source of remittances while UAE and Qatar are emerging as key contributors, reflecting the increasing number of Kenyans working in the Gulf. The significant growth in remittances from Australia points to a rapidly expanding Kenyan diaspora in the region.

The drop in remittances from Europe, particularly the UK, highlights potential economic challenges or shifting migration patterns. The decline in remittances from Africa may reflect broader economic difficulties in the region, impacting the ability of the diaspora to send funds home.

According to the figures, total remittances to Kenya grew from USD 412.41 million (KSh53,39 billion) in January 2024 to USD 427.37 million (KSh55.33 billion) in January 2025, reflecting a 3.6 per cent year-on-year increase. This growth underscores the resilience of remittances as a key source of foreign exchange and financial support for many Kenyan households.

Americas: Steady Growth with the U.S. Leading

The Americas remain the largest source of remittances to Kenya, accounting for USD 227.93 million (KSh29.48 billion) in January 2024 and USD 243.48 million (KSh31.48 billion) in January 2025, an increase of 6.8 per cent. The United States is the dominant contributor, with remittances growing from USD 221.01 million (KSh28.59 billion) in January 2024 to USD 227.50 million (KSh29.42 billion) in January 2025. Canada also shows significant growth, with remittances more than doubling from USD 6.11 million (KSh790 million) to USD 12.94 million (KSh1.67 billion).

Europe: Mixed Performance with Declines in Key Countries

Europe’s contribution to remittances declined from USD 85.0 million (KSh10.99 billion) in 2024 to USD 70.1 million (KSh9.07 billion) in 2025, a 17.5 per cent drop. The United Kingdom, traditionally a major source, saw a sharp decrease from USD 49.0 million (KSh6.34 billion) to USD 25.3 million (KSh3.27 billion), possibly due to economic uncertainties or shifting migration patterns. Germany, Switzerland, and the Netherlands, however, showed modest growth, with Germany increasing from USD 14.9 million (KSh1.93 billion) to USD 15.7 million (KSh2.03 billion). Italy and Belgium also posted gains, while Sweden and France experienced declines. The overall reduction in European remittances may reflect economic challenges or changing priorities among the diaspora.

Asia: Strong Growth Driven by the Gulf Region

Asia’s remittances grew from USD 55.1 million (KSh7.12 billion) in 2024 to USD 64.7 million (KSh8.36 billion) in 2025, a 17.3 per cent increase. Saudi Arabia remains the largest contributor, with remittances rising from USD 32.0 million (KSh4.14 billion) to USD 32.9 million (KSh4.25 billion). The United Arab Emirates (UAE) saw a significant surge, from USD 9.3 million (KSh1.20 billion) to USD 14.7 million (KSh1.90 billion), reflecting the growing Kenyan workforce in the Gulf region. Qatar also posted strong growth, increasing from USD 3.8 million (KSh491 million) to USD 5.3 million (KSh684 million). However, India and Japan experienced declines, with India’s remittances dropping from USD 2.8 million (KSh362 million) to USD 1.0 million (KSh130 million), possibly due to economic factors or reduced migration.

Africa: Declines in Key Contributors

Remittances from Africa decreased from USD 31.5 million (KSh4.07 billion) in 2024 to USD 26.2 million (KSh3.39 billion) in 2025, a 16.8 per cent decline. Tanzania and Uganda, the largest contributors, both saw reductions, with Tanzania’s remittances falling from USD 8.4 million (KSh1.08 billion) to USD 7.0 million (KSh907 million) and Uganda’s from USD 6.0 million (KSh776 million) to USD 5.4 million (KSh699 million). South Africa, Nigeria, and Ivory Coast posted modest gains, but these were offset by declines in other countries such as South Sudan and Egypt. The overall drop may reflect economic challenges in the region or reduced migration flows.

Australia and Oceania: Significant Growth

Australia and Oceania showed remarkable growth, with remittances increasing from USD 11.4 million (KSh1.47 billion) in 2024 to USD 21.1 million (KSh2.73 billion) in 2025, an 84.8 per cent surge. Australia alone accounted for most of this growth, with remittances more than doubling from USD 11.1 million (KSh1.43 billion) to USD 20.7 million (KSh2.68 billion). New Zealand and other smaller contributors also posted gains, indicating a growing Kenyan diaspora in the region.