Remittances from Australia to Kenya overtake Saudi Arabia and Germany, soar by 48 per cent in six months to Sh14.58 billion

Kenyans in Australia sent home Sh14.58 billion from January to June 2025, marking a 48 per cent increase and positioning the country as the fastest-rising source of remittances into Kenya, data from the Central Bank of Kenya (CBK) shows.

CBK notes that this was an increase from $76.3 million (Sh9.86 billion) in the same period last year, making the 47.85 per cent climb the steepest among Kenya’s top remittance sources.

The rise reflects the expanding Kenyan community in Australia and strong demand for skilled labour in sectors such as health and construction. Australia has now overtaken Saudi Arabia and Germany, which have traditionally been high-growth remittance corridors but recorded declines in the first half of 2025.

Data shows inflows from Saudi Arabia slipped by 6.2 per cent to $189.7 million (Sh24.52 billion), while Germany saw a 7.1 per cent drop to $95.8 million (Sh12.38 billion), a trend analysts attribute to labour market adjustments and currency fluctuations.

Australia’s resurgence as a key remittance source aligns with shifting migration trends, as Kenyans diversify their destinations beyond traditional labour markets. The country’s post-pandemic demand for skilled workers has also attracted a growing number of Kenyan professionals, reinforcing the role of remittances as Kenya’s largest source of foreign exchange, ahead of tourism, tea, and horticulture exports.

Total remittances to Kenya increased 5.88 per cent in the six months to $2.52 billion (Sh325.68 billion).

CBK Governor Kamau Thugge projected a six per cent growth for the full year, reaching $5.2 billion (Sh672.05 billion) by December.

“Remittance inflows have remained resilient despite increased global uncertainties supported by diversified source countries and effects of government policy to export skilled labour,” Thugge said on August 13.

The United States remained the dominant remittance source, with Kenyans there sending home $1.35 billion (Sh174.47 billion) in the review period, a 7.7 per cent rise from $1.25 billion (Sh161.55 billion) in the first half of 2024.

Meanwhile, remittances from the United Kingdom declined by 8.8 per cent to $167.4 million (Sh21.63 billion). Despite renewed immigration crackdowns under President Donald Trump, who reinstated stricter border controls, visa processes, and deportation measures after returning to office in January 2025, US remittances remain resilient, reflecting the size and stability of the Kenyan diaspora in America.

Since taking office in September 2022, President William Ruto has prioritised labour migration as a central pillar of job creation. The government argues that exporting skilled and semi-skilled Kenyans will curb domestic unemployment while boosting remittance inflows.

President Ruto has also committed to negotiating bilateral labour deals with developed economies to expand opportunities for Kenyans abroad

Nairobi, meanwhile, is actively pursuing structured labour agreements. Last year, Kenya signed a labour migration deal with Germany, creating legal pathways for skilled Kenyans to work in Europe’s largest economy while establishing frameworks for the repatriation of those without valid permits.

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• soar by 48 per cent in six months to Sh14.58 billion