Diaspora remittances to Kenya fell by 4.7 per cent in June 2026, according to the Central Bank of Kenya’s (CBK) latest Weekly Bulletin, reflecting lower inflows from the country’s key remittance source markets.

The report shows remittance inflows totalled approximately Ksh48.47 billion in June 2026, down from Ksh50.87 billion recorded in May 2026.

“Remittance inflows to Kenya totalled USD 375.6 million in June 2026 compared to USD 394.2 million in May 2026, representing a 4.7 per cent decrease. The decline was mainly attributable to lower inflows from key source markets,”the bulletin dated July 19, 2026, states.

Despite the monthly decline, the Central Bank noted that remittances remain a major source of foreign exchange earnings for the country.

Annual remittances also decline

The CBK also reported a decline in cumulative remittance inflows over the past 12 months.

According to the bulletin, total remittances for the 12 months to June 2026 stood at approximately Ksh640.04 billion, compared to about Ksh656.04 billion recorded during the corresponding period in 2025.

The year-on-year decline represents a 2.4 per cent reduction in cumulative inflows. The report attributes the latest monthly decline to reduced remittances from Kenya’s major source markets, although it does not identify the countries affected.

The Central Bank noted that remittance inflows continue to play a significant role in supporting Kenya’s external sector.

“Remittance inflows remain an important source of foreign exchange earnings and continue to support the balance of payments,” the report states.

Key source of foreign exchange

Diaspora remittances continue to provide a major source of foreign exchange for Kenya, supporting household incomes and the wider economy.

The funds are commonly used to finance education, healthcare, housing and business investments, while also contributing to foreign exchange availability.

The CBK’s remittance chart shows monthly inflows have fluctuated over the past three years, although overall volumes have remained relatively strong.

The June inflow of about Ksh48.6 billion continues the trend of substantial monthly transfers from Kenyans living and working abroad despite the latest decline.

This comes amid growing recognition by the Central Bank of Kenya that diaspora remittances have become a key pillar of the country’s economic stability.

CBK Research Director Robert Mudida recently said remittances now contribute about 3.7 per cent of Kenya’s Gross Domestic Product (GDP), with annual inflows surpassing Ksh1.15 trillion between June 2024 and May 2025. He noted that remittances have overtaken both Foreign Direct Investment (FDI) and official development assistance, making them one of the country’s most important sources of foreign exchange.

Mudida said about 91 per cent of remittances are received in cash, while 9 per cent come in kind, with the United States, United Kingdom, Germany, Canada and Australia accounting for nearly 80 per cent of total inflows.

He added that while banks remain the leading formal remittance channel at 43.7 per cent, mobile money has grown to 33 per cent, reflecting Kenya’s expanding digital financial ecosystem. Despite the decline recorded in June, CBK maintains that remittance inflows continue to support the balance of payments and strengthen the country’s external sector resilience.

The Central Bank said remittances remain an important component of Kenya’s balance of payments by providing a non-debt source of foreign exchange that supports the country’s external position.

The latest figures will be monitored alongside other external sector indicators as policymakers assess trends in foreign exchange inflows during the second half of 2026.