Kenyans working overseas sent a total of Sh53 billion back home in January 2026, showing a modest decrease compared to the same period last year, even as overall yearly remittances continue to grow.
The Central Bank of Kenya reported on February 13 that the January figure was down 3.8 per cent from Sh55.1 billion recorded in January 2025, reflecting a shortfall of roughly Sh2 billion.
Despite this decline in monthly figures, total remittances over the last 12 months rose from Sh640.9 billion to Sh648.7 billion, representing a 1.2 per cent increase.
The Central Bank of Kenya underlined the importance of diaspora contributions, stating that “remittance inflows remain a key source of foreign exchange earnings and continue to support the balance of payments.”
These funds play a crucial role in sustaining families across Kenya while also strengthening the nation’s foreign reserves, which stood at Ksh1.6 trillion as of February 12, 2026.
Analysts say the drop in January inflows is partly linked to new regulations imposed on money transfer operators. The Central Bank has implemented stricter licensing and compliance rules requiring enhanced anti-money laundering and counter-terrorism checks, closer monitoring, and higher reporting standards.
While the regulator maintains these measures protect the integrity of Kenya’s financial system, they have also raised operating costs for smaller remittance providers. Many firms have had to invest in improved systems, boost due diligence processes, and comply with tougher know-your-customer requirements.
Further, the bank conducts periodic surveys, including the Remittances Household Survey, to track both formal and informal remittance channels. This increased oversight ensures a clearer picture of money flows and helps safeguard the economy from risks linked to informal transfers.
Foreign exchange policies also play a part in shaping remittance trends. Actions taken to stabilize the shilling and manage reserves affect exchange rate movements, which in turn influence the local currency value that recipients receive.
Market dynamics are changing as well. High compliance costs and shrinking profit margins have forced some smaller and niche operators out of the business, consolidating the sector. Larger banks and technology-driven firms now dominate the remittance landscape, benefiting from a more substantial market share.
Despite the dip in January, diaspora remittances continue to be a vital source of foreign currency, supporting household consumption and contributing to Kenya’s overall economic stability.
