Kenya is facing its first annual decline in diaspora remittances since 2009, according to data from the Central Bank of Kenya (CBK). In the first seven months of 2026, remittances totaled Sh368.75 billion, a decrease of Sh9 billion compared to the same period last year.
The decline is attributed to economic challenges in key source countries, including the United States, the United Kingdom, and other European nations, where many Kenyan expatriates work. Stricter immigration policies and a stronger Kenyan shilling have also contributed to reduced inflows.
Remittances are a vital source of foreign exchange for Kenya, supporting household incomes and the broader economy. The CBK has noted the trend and is monitoring the situation, but has not yet issued a formal statement on the potential full-year impact.
Economists warn that a sustained decline could put pressure on the Kenyan shilling and widen the current account deficit. However, they also note that the country's economy has shown resilience, and other sectors such as tourism and exports may help offset the impact.
