Kenya’s diaspora remittances increased by 4.5 per cent year-on-year to US$438.55 million, equivalent to approximately KSh56.9 billion, in September 2026, maintaining near-record monthly inflows despite a continued decline in money sent from North America.
September’s receipts ranked as the sixth-highest monthly inflow on record, although they were 2.9 per cent lower than the record US$451.85 million received in August.
The month also marked the end of the strongest quarter in the available data series, with remittances reaching US$1.327 billion in the third quarter. This represented a 5.7 per cent increase compared with the same period in 2025 and a 13.6 per cent rise from the US$1.168 billion recorded in the second quarter.
July, August and September each registered remittance inflows exceeding US$430 million, marking the first time three consecutive months had crossed that threshold. The third quarter’s monthly average consequently rose to US$442.3 million.
Despite the overall growth, North America recorded a significant decline in remittance contributions. Inflows from the region fell by 12.4 per cent year-on-year to US$215.47 million in September, down from US$245.86 million during the corresponding month last year.
North America’s contribution to total remittances also declined to 49.1 per cent from 58.6 per cent, bringing its share below half of Kenya’s monthly inflows.
Europe recorded stronger growth, with remittances increasing by 19.7 per cent year-on-year to US$97.74 million in September. The region’s share of total inflows rose to 22.3 per cent from 19.5 per cent.
Meanwhile, remittances categorised under the Rest of World grouping surged by 36 per cent to US$125.34 million, accounting for 28.6 per cent of the total, compared with 22 per cent a year earlier.
North America Records KSh31.8 Billion Decline
The changing pattern is also evident in the cumulative figures for the first nine months of 2026.
Between January and September, North America contributed US$1.946 billion, representing an 11.2 per cent decline from the US$2.191 billion recorded during the same period in 2025.
The difference amounts to approximately US$245 million, equivalent to about KSh31.8 billion.
Europe, however, recorded an increase of roughly US$115 million in remittance inflows over the nine-month period, bringing its total to US$798 million.
The Rest of World category added nearly US$125 million to reach US$1.025 billion. Combined, the gains from the two regions offset approximately 98 per cent of the decline in remittances from North America.
Consequently, Kenya’s total diaspora remittances for January to September stood at US$3.769 billion, only 0.1 per cent below the US$3.774 billion recorded during the corresponding period last year.
US Remittances Drive North America’s Decline
Country-level figures available through August indicate that the United States accounted for much of the weakening performance in North America.
Remittances from the US dropped by 15.4 per cent year-on-year to US$205.22 million in August. Cumulative inflows from the country were also down 12.4 per cent during the first eight months of 2026.
The decline has coincided with the introduction of a one per cent US tax on certain cash-funded remittance transfers from January 2026, alongside stricter immigration enforcement and mounting pressure on household incomes.
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However, the trend has not been consistent across all countries receiving money from the US, with some major recipient markets continuing to register growth this year.
Other remittance corridors have shown stronger performance. Europe’s September inflows reached a record US$97.74 million, while remittances originating from Africa rose by 49.7 per cent year-on-year to US$40.50 million in August.
The African figure was the first time monthly inflows from the region had exceeded US$40 million since June 2020. Tanzania and Uganda have been among the leading contributors to recent growth in identifiable African source markets.
The Central Bank of Kenya (CBK) reported that remittances over the 12 months to September totalled US$5.032 billion, down one per cent from US$5.080 billion recorded a year earlier.
The annual decline narrowed from 1.3 per cent in August, supported by stronger inflows during the third quarter, which helped offset weaker performance earlier in 2026.
