Kenya’s diaspora remittances remained close to last year’s level in the first nine months of 2026 despite a KSh 31.83 billion decline in money sent from North America, as stronger inflows from Europe and other regions helped cushion the shortfall. Central Bank of Kenya (CBK) data show that Kenyans abroad sent home $3.769 billion (KSh 489.22 billion) between January and September, slightly below the $3.774 billion (KSh 489.87 billion) recorded during the same period in 2025.
The 0.14% decline marks a slowdown from the 3.7% growth recorded in the first nine months of 2025 and the 17.14% expansion posted in the corresponding period of 2024. The figures highlight the growing pressure on one of Kenya’s important sources of foreign exchange, which supports household spending and helps finance imports.
North America, predominantly the United States, remained Kenya’s largest source of diaspora remittances. Inflows from the region fell by 11.19% to $1.946 billion (KSh 252.59 billion), down from $2.191 billion (KSh 284.39 billion) a year earlier, representing a loss of $245.2 million.
The decline coincided with the introduction of a 1% US tax on certain money transfers abroad from January 1, 2026, alongside rising living costs that have squeezed disposable incomes among Kenyans living in the United States.
However, the available figures do not establish how much of the fall was directly caused by the levy.
Stronger inflows from other regions helped offset most of the decline. Remittances from Europe increased by 16.87% to $798.4 million (KSh 103.63 billion), while inflows from the rest of the world rose by 13.86% to $1.025 billion (KSh 133.05 billion). Combined, the two regions generated an additional $240.5 million, nearly compensating for North America’s decline.
CBK Governor Kamau Thugge previously attributed the slowdown partly to reduced inflows from the United States and Saudi Arabia. Following the Monetary Policy Committee meeting on October 8, he said remittances had shown some recovery in recent months, although the overall trend remained subdued.
Remittances provide Kenyan households with money for school fees, healthcare, housing and everyday expenses. They also supply foreign currency to the economy, meaning a prolonged decline could weaken an important source of dollar inflows.
The CBK has projected remittance growth of 0.7% for 2026, followed by 3% in 2027. The next monthly remittance figures will show whether stronger contributions from Europe and other regions can offset continued weakness in North American inflows and return diaspora earnings to growth.
