Japhet Ruto, a journalist at TUKO.co.ke, brings more than eight years of expertise in finance, business, and technology journalism in Kenya and globally.

Kenya's diaspora remittances increased by KSh 3.32 billion in April 2025, compared to a similar period in April 2024.

This is according to the Central Bank of Kenya's weekly bulletin, which highlighted monetary and financial developments in the country.

CBK's report published on Friday, May 16, revealed that remittance inflows in April 2025 rose by 6.4% to $422.9 million (KSh 54.83 billion), up from $397.3 million (KSh 51.51 billion) in April 2024.

In the last 12 months, total remittance inflows soared by 12.1% from $4,457 million (KSh 576 billion) to $4,997 million (KSh 645.57 billion).

The banking regulator noted that the United States of America accounted for more than half (56%) of the total money sent by Kenyans abroad.

"The cumulative inflows for the 12 months to April 2025 increased by 12.1% to $4,997 million (KSh 645.57 billion) compared to $4,457 million (KSh 576 billion) in the corresponding period of 2024. These sustained inflows continue to underpin Kenya’s current account stability and bolster foreign exchange market resilience. The United States (US) accounted for 56% of total remittances in April 2025, reinforcing its position as the dominant source of remittances," CBK disclosed.

After disclosing a plan to tax money transferred to Kenya and other countries, House Republicans in the US might deliver a big blow to remittances from the Kenyan diaspora.

More than 40 million individuals, including those with green cards and non-immigrant visa holders who send money to their families, will be impacted if the bill is approved.

The Washington Post reported that the lawmakers' new bill would impose a 5% remittance tax.

To "shut down remittances" that people in the US illegally send, US president Donald Trump announced that he is working on a presidential memorandum.

Eighteen states have proposed laws to control remittances through taxes on money transfers, both domestically and internationally, according to NBC News in recent years. However, they did not see the light of day.

President Trump reaffirmed his intention to deport all illegal immigrants in the United States following his inauguration on Monday, January 20.

Thousands of Kenyans who live and work in the US could face deportation after the 47th US president pledged "mass deportations" and arrests.

The Republican leader also signed an executive order to confiscate property and withhold the salaries of illegal immigrants.

Trump's new immigration policies have alarmed Kenyans in the US, who fear they may negatively impact remittances from the diaspora.

Source: TUKO.co.ke