Kenya’s foreign inflows received a notable lift in March 2026 after money sent home by citizens living abroad rose to Sh58.15 billion, marking the strongest monthly performance so far this year.
The latest figures from the Central Bank of Kenya show the increase was driven by a sharp rebound from February’s Sh53.31 billion, pointing to renewed momentum in diaspora support to the economy.
The upward movement also stands out when compared with January 2026, when remittances stood at Sh52.65 billion, showing that inflows have been on a steady climb through the first quarter of the year.
The growth came during a period marked by global uncertainty, including tensions that followed the start of the U.S./Israel war on Iran on February 28, an event that had raised concerns about possible disruptions in international money transfers.
On a broader scale, the latest monthly performance pushed the total diaspora inflows for the 12 months ending March 2026 to Sh655.9 billion (USD 5,079 million). This is an increase from Sh642.1 billion (USD 4,972 million) recorded in the same period a year earlier, reflecting a 2.2 per cent year-on-year rise and reinforcing the growing importance of remittances in Kenya’s external earnings.
The Central Bank has pointed to the steady inflows as one of the stabilising factors in the country’s foreign exchange position, noting that the trend has been supported in part by the relative strength of the Kenyan shilling against the U.S. dollar. This has helped maintain confidence in cross-border transfers and ensured continued financial support from Kenyans working abroad.
In its weekly bulletin dated April 17, the Central Bank reaffirmed that diaspora remittances remain a key source of foreign exchange and continue to play a central role in balancing external payments. The update comes at a time when the country is dealing with mounting pressure on its foreign reserves.
As of April 16, Kenya’s foreign exchange reserves stood at Sh1.718 trillion (USD 13,306 million), providing about 5.6 months of import cover. This marked a drop from Sh1.813 trillion (USD 14,022 million) recorded on March 26 and Sh1.845 trillion (USD 14,294 million) reported on March 18, indicating a gradual decline over recent weeks.
Although the reserves remain above the statutory requirement of at least four months of import cover, the downward trend has increased attention on alternative sources of foreign exchange. Diaspora remittances have therefore become even more critical in cushioning the economy against external shocks and supporting the stability of the local currency.
During the week ending April 16, the Kenyan shilling maintained relative stability, exchanging at Sh129.18 against the U.S. dollar. This represented a slight improvement from Sh129.53 recorded the previous week on April 9, reflecting a generally steady currency environment despite ongoing economic pressures.
Central Bank data further shows that North America, particularly the United States, and Europe remain the leading sources of remittances into Kenya. At the same time, inflows from Gulf countries have been rising steadily, supported by an increasing number of Kenyan workers seeking employment opportunities in the region. However, the March bulletin did not provide a breakdown of contributions by specific regions.
The timing of the remittance increase has drawn attention given the current domestic economic conditions. Fuel prices have risen to Sh197.60 per litre for petrol and Sh196.63 per litre for diesel, adding fresh pressure on households and businesses. The higher fuel costs are expected to feed into the prices of goods and services in the coming weeks, raising the likelihood of increased inflationary pressure.
With both external reserves easing and local cost pressures rising, diaspora inflows are playing a growing role in cushioning the economy. The March figures underline the continued reliance on Kenyans abroad as a key source of foreign currency and financial stability, especially during periods of economic strain.
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