Money sent home by Kenyans abroad records a dip in January as shilling holds steady
By Faith Lagat, February 15, 2026Kenya recorded a 3.8 per cent decline in diaspora remittances in January 2026, with inflows totalling Ksh55.12 billion in January 2025 to Ksh53.08 billion in January 2026, according to the Central Bank of Kenya’s (CBK) Weekly Bulletin released on February 13, 2026.
Despite the monthly dip, the 12-month cumulative remittances to January 2026 rose marginally by 1.2 per cent, from Ksh639.55 billion to Ksh647.75 billion, in the corresponding period a year earlier.
Remittances remain a key source of foreign exchange inflows, supporting household consumption and contributing to the country’s balance of payments.
“Remittance inflows to Kenya totalled USD 411.3 million in January 2026, from USD 427.4 million in January 2025, a decrease of 3.8 per cent,” read the CBK bulletin in part.
“The 12-month cumulative inflows to January 2026 increased by 1.2 per cent to USD 5,021 million compared to USD 4,960 million in a similar period in 2025. Remittance inflows remain a key source of foreign exchange earnings and continue to support the balance of payments.”
Stable shilling amid strong reserves
The Kenyan shilling remained stable during the review period, closing at Ksh129.02 per US dollar on February 12, 2026, unchanged from February 5, 2026. The currency also recorded minimal movement against other major international currencies, including the sterling pound and the euro.
CBK data show that foreign exchange reserves stood at approximately Ksh1.61 trillion as of February 12, 2026, equivalent to 5.4 months of import cover. This is above the statutory requirement of four months, indicating adequate buffers to support the currency against external pressures.
Rate cut to support credit growth
The move marked the tenth consecutive rate cut as the regulator seeks to support private sector credit growth and improve monetary policy transmission.
The MPC also narrowed the interest rate corridor around the CBR from ±75 to ±50 basis points, a step aimed at enhancing policy effectiveness. Inflation is projected to remain below the 5 per cent midpoint target in the near term.
Financial markets performance
Domestic financial markets continued to reflect sufficient liquidity during the week under review. Excess reserves in the banking sector stood at Ksh12.7 billion, while Treasury bill and bond auctions attracted strong investor demand.
At the equities market, the Nairobi Securities Exchange All Share Index (NASI) rose by 5.29 per cent week-on-week to close at 213.02 points, reflecting increased investor activity.