Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.

Kenya recorded a historic high in remittance inflows, with USD 440.1 million (KSh 56.9 billion) sent in May 2025.

This marked a 4.1% increase from the USD 422.9 million (KSh 54.7 billion) received in April.

This is the highest monthly inflow ever recorded, according to data released by the Central Bank of Kenya (CBK).

" Remittance inflows amounted to USD 440.1 million in May 2025, reflecting a growth of 4.1 percent from USD 422.9 million recorded in April (Chart 1). The cumulative inflows for the 12 months to May 2025 increased by 11.6 percent to USD 5,033 million compared to USD 4,510 million in the corresponding period of 2024," CBK reported.

The United States remained the largest source of remittances, contributing 57% of the total inflows in May 2025. This sustained dominance reflects the large Kenyan diaspora in the U.S. and their growing use of digital transfer platforms.

Other key source regions include the United Kingdom, Saudi Arabia, Germany, and Canada, though none come close to the US in terms of volume.

Remittance flows are the second highest source of foreign exchange for Kenya, coming in after exports of goods and services. The flows' increase is expected to provide much-needed shilling support, which has seen relative stability in recent months.

The CBK further stated that stable remittance growth is helping to cushion the country's current account deficit and reduce forex market volatility.

The CBK attributed the steady growth to the resilience of Kenyans abroad and the increasing formalisation of money transfer channels.

“The steady growth in remittance inflows continues to support the current account position and stability in the foreign exchange market,” the CBK said in its monthly report.

Earlier, Kenya’s diaspora remittances rose to KSh 645.57 billion in the 12 months to April 2025, up from KSh 576 billion the previous year.

In April, Kenyans in the United States accounted for 56% of the total remittances into the country.

However, a proposed 5% remittance tax by former U.S. President Donald Trump, alongside mass deportation and immigration crackdowns, has sparked concern among Kenyans in the U.S., threatening the future of these critical inflows.

Source: TUKO.co.ke