Diaspora remittances record slower growth as Kenyans send home Sh159.5 billion in three months
Data from the Central Bank of Kenya (CBK) shows that February recorded the slowest increase in remittance flows for the quarter, compared to the other months.
Kenyans abroad sent home $1.23 billion (Sh159.5 billion) in remittances during the first quarter of 2025, reflecting a slow growth of 2.2 per cent compared to the same period last year, when the inflows jumped 18.8 percent to $1.21 billion (Sh156.9 billion).
Data from the Central Bank of Kenya (CBK) shows that February recorded the slowest increase in remittance flows for the quarter, compared to the other months.
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CBK data indicates that Kenyans living and working abroad sent home $427.4 million (Sh55.4 billion) in January, followed by $422.9 million (Sh54.8 billion) in March, and $382.2 million (Sh49.6 billion) in February.
“Remittance inflows in March 2025 totalled $422.9. million compared to $ 407.8 million in March 2024, an increase of 3.7 per cent. The cumulative inflows for the 12 months to March 2025 increased by 13.5 per cent to $4,972 million compared to $4,380 million in a similar period in 2024. The remittance inflows continue to support the current account and the foreign exchange market,” the CBK said.
The total remittance inflows between January and March this year represent a $26.4 million (Sh3.4 billion) increase from the value of cash sent home during a similar period in 2024.
However, this is a stark contrast to the $190.5 million (Sh24.7 billion) year-on-year addition recorded during the first quarter of last year, highlighting a significant slowdown.
The dip in growth has coincided with the assumption of office by US President Donald Trump, whose administration has rolled out a series of radical anti-immigrant policies, including threats of mass deportations. However, the United States remains the single largest source of diaspora remittances to Kenya, accounting for 53 per cent of total inflows as of March—down from 56 per cent in the same period last year.
Since his inauguration on January 20 this year, President Trump has made decrees that have sent shockwaves across global economies.
Among the most far-reaching measures by the Trump administration include the US withdrawal from the Paris Accord on climate change, exiting the World Health Organisation (WHO), a squeeze on funding for refugees, and the imposition of reciprocal tariffs on exports into the US.
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