Kenya Diaspora Remittances Hit Record $5.08 Billion in 2024/25

Kenya’s diaspora remittance inflows hit a record $5.084 billion in the 2024/25 financial year, marking the first time the country has crossed the $5 billion threshold, according to the Central Bank of Kenya (CBK). This represents an increase from $4.535 billion in FY2023/24, highlighting the continued importance of remittances as a source of foreign exchange and a contributor to the country’s economic stability.

Despite this historic milestone, the growth rate of remittances has moderated, rising by 12.1% compared to previous periods. While still strong, this slowdown reflects a stabilization following the post-pandemic surge in global money transfers. These inflows were instrumental in boosting the secondary income account surplus, which rose by $432 million to reach $7.612 billion during the year, supporting Kenya’s broader macroeconomic framework.

Remittances also contributed to the stability of the Kenyan Shilling, which showed a slight strengthening trend during the year, moving from an average of KSh 129.47 per USD in the first quarter to KSh 129.34 by the fourth quarter. In addition, the inflows supported a significant buildup in gross official foreign exchange reserves, which increased to $9.1 billion by June 2025, equivalent to five months of import cover, up from $7.4 billion the previous year.

The slower growth in remittances reflects broader global and regional economic trends. The IMF projects global growth to moderate to 3.0% in 2025, while Sub-Saharan Africa is expected to maintain growth of around 4.0%, supported by easing inflation and improving stability in key economies such as Kenya. Overall, diaspora remittances remain a vital pillar of Kenya’s financial resilience, contributing to currency stability, reserve accumulation, and economic development.