Kenyan households received Sh931.8 billion from relatives and friends living abroad between June 2024 and May 2025, reflecting the rising importance of diaspora support in sustaining family incomes and boosting the wider economy.
The findings are contained in the 2025 Remittances Household Survey conducted by the Kenya National Bureau of Statistics (KNBS), the Central Bank of Kenya (CBK) and Financial Sector Deepening Kenya (FSD Kenya), which shows that remittances continue to play a major role in household welfare across the country.
"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, with cash transfers accounting for 91.0 per cent, and in-kind inflows comprising the remaining 9 per cent," the report states.
The United States was identified as the leading source of diaspora inflows into Kenya, followed by Germany and Australia.
"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 survey places diaspora remittances among Kenya’s strongest foreign exchange earners, at times surpassing key traditional export sectors.
Most of the money is moved through regulated financial systems, with banks and mobile money platforms dominating 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.
The report further shows that remittances serve different purposes depending on household needs, income levels, and family situations.
"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.
The data indicates that more than one in five households relying on diaspora support depend on it as their main source of survival.
Rural areas account for the majority of beneficiaries, reflecting deep financial ties between urban migrants abroad and families in villages.
According to the survey, 65.1 per cent of households receiving remittances were located in rural areas, compared to 34.9 per cent in urban centres.
The findings also highlight a strong link between remittances and financial inclusion, with most recipients actively using mobile money and banking services.
"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 shows that only a small share of households invest remittance income in financial products such as securities, microfinance accounts or cryptocurrencies.
The KNBS, CBK and FSD Kenya say the findings provide critical evidence for policymakers seeking to leverage diaspora resources for economic growth and 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 further note that the survey's findings are expected to strengthen policies aimed at enhancing financial inclusion and maximising the contribution of the Kenyan diaspora to national development.