Diaspora Remittances Drop 3.8% in January, CBK Reports

Kenya's diaspora remittances fell by 3.8 percent in January 2026, with the Central Bank of Kenya (CBK) reporting Ksh53 billion, down from Ksh55.1 billion in January 2025.

Despite this dip, the overall trend in remittances remains positive. For the 12-month period leading to January 2026, total remittances grew by 1.2 percent, from Ksh640.9 billion to Ksh648.7 billion. The CBK continues to highlight the importance of these inflows, which are a key source of foreign exchange and help stabilise the country's balance of payments. 

As of mid-February 2026, Kenya's foreign exchange reserves stood at Ksh1.6 trillion, partly supported by the ongoing flow of remittances. The recent decline has been attributed to tighter regulations and enhanced compliance standards for money transfer operators. 

These measures, which include stricter anti-money laundering checks and more detailed reporting requirements, have led to higher operational costs, particularly for smaller firms. While these reforms are intended to improve financial system integrity, they have altered the remittance landscape, with some smaller operators exiting the market.

CBK has responded by strengthening its monitoring efforts, including conducting household surveys to capture both formal and informal remittance flows. This has prompted operators to upgrade their systems and comply with more rigorous know-your-customer requirements. Additionally, CBK’s interventions in the foreign exchange market have influenced the value of remittances when converted to local currency.

Market consolidation is becoming more evident, with rising compliance costs and narrowing margins favouring larger banks and fintech platforms over smaller players.