For the first time in two years, Kenya is receiving less money from citizens working abroad, with fresh data showing a drop in remittance inflows as economic pressures in major foreign labour markets begin to affect the spending power of migrant workers.
Figures released by the Central Bank of Kenya show that Kenyans living overseas sent home $2.066 billion between January and May this year, compared to $2.095 billion during the same period in 2025. The difference of $29.1 million, equivalent to about Sh3.77 billion, marks a 1.39 percent decline and ends a period of sustained growth in diaspora remittances.
The downturn points to a shift after years in which remittances remained one of Kenya’s most dependable sources of foreign exchange despite economic uncertainty across the world.
The latest performance echoes the trend seen in 2023 when remittance inflows during the review period fell by 1.8 percent. At the time, rising prices across major economies reduced the amount of disposable income available to migrant workers, limiting the money they could send to relatives back home.
The biggest setback this year came from the United States, which remains Kenya’s leading source of remittance earnings.
CBK data indicates that money sent from the US dropped to $813.6 million (Sh105.36 billion) in the four months to April, down from $888.4 million (Sh115.05 billion) recorded during the same period last year. This translated to a reduction of $74.8 million, or roughly Sh9.69 billion.
The performance of the US market carries major importance because it contributes more than half of all remittances received by Kenya annually. Any decline from that market therefore has a direct effect on the country's overall inflows.
Saudi Arabia also registered a sharp reduction in transfers, making it the second-largest contributor to the overall decline.
Funds sent from the kingdom fell from $117.9 million to $88.7 million during the review period, representing a 24.8 percent drop. This reduced inflows by $29.2 million, equivalent to about Sh3.78 billion.
The weaker performance has been linked to slower economic activity and changes within the Saudi labour market. The country has in recent years intensified efforts to increase employment opportunities for its own citizens, creating tougher conditions for foreign workers, including many Kenyans.
Germany was another source market that recorded lower remittances. Transfers from the European nation fell by 15.5 percent to $41.3 million (Sh5.35 billion).
Although Germany has an agreement with Kenya that supports the recruitment of skilled and semi-skilled workers, its relatively small share of total remittances meant the decline had a limited effect on aggregate inflows.
Not all markets recorded a slowdown.
Money sent from the United Kingdom increased by 26.9 percent to $133.3 million, or about Sh17.26 billion, recovering from the weaker performance posted a year earlier.
Australia also continued to record strong growth, with remittances rising by 19.7 percent to $88 million (Sh11.4 billion).
However, the gains from the two countries were not enough to make up for the steep reductions recorded in the United States and Saudi Arabia, leaving Kenya with an overall decline in remittance earnings.
The slowdown comes at a time when the Central Bank of Kenya has raised concerns over the wider economic effects of the conflict in the Middle East.
According to the regulator, the crisis has disrupted trade routes and increased costs across the global economy, putting pressure on households in countries that host large numbers of Kenyan workers.
“The conflict in the Middle East has disrupted global supply chains and led to a sharp increase in prices and transportation costs, resulting in higher inflation and moderated global growth,” the CBK's Monetary Policy Committee said after leaving the benchmark lending rate unchanged at 8.75 percent on June 9.
The warning suggests that rising living costs and slower economic growth in key economies are beginning to affect the ability of Kenyans abroad to send money home, reversing a growth trend that had remained largely intact in recent years.