Diaspora Remittances Hit Ksh58 Billion in March as Inflows Surge 9%

Diaspora Remittances Hit Ksh58 Billion in March as Inflows Surge 9%

Kenyans living and working abroad sent home a record Ksh58.15 billion (USD 450.3 million) in March 2026, marking the highest monthly diaspora remittance inflow recorded this year and underscoring the growing importance of overseas earnings to the country’s economy.

According to fresh data released by the Central Bank of Kenya (CBK), the March inflows represent a 9.1 per cent increase from the Ksh53.31 billion (USD 412.7 million) recorded in February. The surge signals a strong rebound following a relatively modest start to the year, where January inflows stood at Ksh52.65 billion (USD 407.8 million).

The latest figures push Kenya’s 12-month cumulative remittances to Ksh655.9 billion (USD 5,079 million) for the period ending March 2026, reflecting a 2.2 per cent increase compared to Ksh642.1 billion recorded during a similar period in 2025. Economists view the steady growth as a reaffirmation of diaspora remittances as one of Kenya’s most resilient and dependable sources of foreign exchange.

“Remittance inflows remain a key source of foreign exchange earnings and continue to support the balance of payments,” the CBK noted in its weekly bulletin dated April 17.

The apex bank attributed the consistent performance partly to the relative stability of the Kenyan shilling against major global currencies, particularly the U.S. dollar. During the week ending April 16, the shilling traded at Ksh129.18 per dollar, slightly strengthening from Ksh129.53 the previous week.

Analysts note that exchange rate stability often encourages diaspora communities to remit more funds, as predictability in currency value enhances the real impact of money sent back home.

The March surge comes at a critical time for Kenya’s external sector, with foreign exchange reserves showing signs of gradual decline. CBK data indicates that reserves stood at Ksh1.718 trillion (USD 13,306 million) as of April 16, equivalent to 5.6 months of import cover. This marks a drop from Ksh1.813 trillion recorded on March 26 and Ksh1.845 trillion on March 18.

While the reserves remain above the statutory minimum requirement of four months of import cover, the downward trend has heightened the significance of diaspora inflows in cushioning the country’s external position.

A man fueling a car at a petrol station

“The current buffer remains adequate, but sustained remittance inflows are critical in supporting the country’s foreign exchange reserves,” an economic analyst familiar with CBK data observed.

Geographically, North America—particularly the United States—continues to dominate as the largest source of remittances to Kenya, followed by Europe. There has also been a noticeable increase in inflows from the Gulf region, reflecting the growing number of Kenyan migrant workers in those countries.

Although the CBK did not provide a detailed breakdown of March inflows by region, trends from previous reports indicate that these corridors remain vital in sustaining the upward trajectory of remittances.

The timing of the surge is particularly significant given the broader economic pressures facing the country. Rising fuel prices, with petrol retailing at approximately Ksh197.60 per litre and diesel at Ksh196.63, are expected to push up the cost of living and potentially drive inflation in the coming weeks.

In this context, diaspora remittances are increasingly serving as a financial lifeline for many households, helping to offset rising expenses and sustain consumption.

“These inflows are not just macroeconomic indicators; they directly support millions of households across the country,” a Nairobi-based financial analyst noted.

As Kenya navigates a complex economic environment marked by global uncertainties and domestic cost pressures, the continued growth of diaspora remittances is expected to play a stabilising role in both household welfare and the broader economy.

With inflows maintaining an upward trend, policymakers will be keen to sustain this momentum, recognising the diaspora community as a critical pillar in the country’s financial ecosystem.

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Diaspora Remittances Hit Ksh58 Billion in March as Inflows Surge 9%