Diaspora remittances continue to be one of Kenya’s most reliable sources of foreign exchange, providing critical support to households, strengthening the country’s external position, and sustaining domestic consumption. However, the latest data for the first five months of 2026 points to a modest slowdown in inflows, suggesting that while remittances remain resilient, global economic conditions are beginning to weigh on the pace of growth.
In May 2026, Kenya received USD 394.2 mn in diaspora remittances, representing a 4.2% decline from the USD 411.3 mn at the start of the year. Total remittances between January and May 2026 registered a slight decline of 1.4% to USD 2.07 bn from USD 2.10 bn in a corresponding period in 2025. The moderation reflects the increasingly challenging economic environment facing Kenyans living abroad, including higher living costs, tighter labour markets in some countries, and persistent global economic uncertainty.
North America remained the largest source of remittances, accounting for just over half of the total inflows throughout the period. Nevertheless, the region registered a noticeable decline compared to the same period last year, with remittances falling from approximately USD 1.20 billion in the first five months of 2025 to USD 1.09 billion in 2026. Given the region’s dominant contribution, this decline largely explains the overall moderation in total remittance inflows.
In contrast, Europe recorded strong growth during the same period. Remittances from the region increased to USD 430.2 mn between January and May 2026 from USD 370.0 mn a year earlier. This improvement highlights the growing importance of European labour markets for Kenyan professionals and skilled workers, while also demonstrating the increasing diversification of Kenya’s diaspora income sources. Remittances from the rest of the world remained relatively stable, providing consistent support despite the broader slowdown.
Monthly remittance patterns also reflected some volatility. March 2026 recorded the highest monthly inflow of the year at USD 450.3 mn, while April and May saw softer inflows of USD 397.8 mn and USD 394.2 mn, respectively. Such fluctuations are common and often reflect seasonal employment patterns, exchange rate movements, and temporary economic conditions in host countries.
The moderation in diaspora remittances can largely be attributed to heightened geopolitical tensions in the Middle East following the Iran-Israel conflict, which disrupted economic activity across the Gulf region where thousands of Kenyans are employed. The uncertainty weighed on key sectors such as construction, hospitality and logistics, leading to reduced earnings and slower remittance flows from some workers. While some migrants initially increased transfers to support their families amid the uncertainty, the prolonged conflict and its economic fallout contributed to softer inflows in April and May. The slowdown highlights Kenya’s growing exposure to external geopolitical shocks as labour migration to the Gulf expands, underscoring the need to diversify both overseas labour markets and sources of foreign exchange to enhance economic resilience.
Despite the slight decline, the broader outlook for diaspora remittances remains positive. Continued migration of skilled Kenyan workers, particularly in healthcare, technology, education, and other professional sectors, is expected to support long-term inflows. As Kenya continues to position labour export as part of its economic strategy, remittances are likely to remain a vital source of foreign exchange, helping cushion the economy against external shocks while supporting household incomes and investment. The latest figures therefore suggest moderation rather than weakness, reinforcing the enduring importance of the Kenyan diaspora to the country’s economic stability.
