By Fridah Mbuvi, June 16, 2026
High transaction fees remain the biggest obstacle to remittance flows into Kenya, according to findings contained in the inaugural 2025 Remittances Household Survey released jointly by the Central Bank of Kenya (CBK), the Kenya National Bureau of Statistics (KNBS), and Financial Sector Deepening (FSD) Kenya.
The first-of-its-kind survey, which examined cross-border remittance trends between June 2024 and May 2025, found that Kenya received a total of Ksh. 931.9 billion during the period, highlighting the critical role diaspora inflows continue to play in supporting households and the broader economy.
Cash transfers accounted for Ksh. 848.4 billion, representing 91 per cent of total inflows, while in-kind support such as goods and services amounted to Ksh. 83.5 billion, or nine per cent.
However, the report revealed that the high cost of sending money remains a major challenge. About 83.3 per cent of recipients cited transfer fees as a significant burden, while 67.3 per cent of senders identified transaction costs as their main obstacle. Other barriers included delays, concerns over privacy, and stringent know-your-customer requirements.
According to the survey, these costs have driven some users towards informal channels despite widespread mistrust, with 60.4 per cent expressing concerns about unregulated methods.
The United States remained Kenya’s largest source of remittances, contributing 54.23 per cent of all cash inflows. Meanwhile, remittances from Saudi Arabia declined following the introduction of a 15 per cent value-added tax on transfer fees.
Women emerged as the primary beneficiaries of diaspora remittances, accounting for 60.3 per cent of recipients. Households with university-educated members attracted the highest share of funds, receiving 30.8 per cent of total inflows.
Most of the money received was directed towards basic household needs, particularly food and education. Only eight per cent of recipient households invested remittance income in agriculture, while debt repayments accounted for 3.1 per cent of expenditure. Investments in construction and real estate remained relatively low, at 2.6 per cent and 2.2 per cent respectively.
The survey also examined outward remittances, revealing that Kenyan households sent Ksh. 41.1 billion abroad during the same period. Of this amount, Ksh. 27.7 billion, representing 68.4 per cent, was used to support dependents studying overseas. Employed migrants abroad received 62.5 per cent of all in-kind goods sent from Kenya.
The findings provide policymakers with new insights into the role of remittances in household welfare and highlight the need to lower transfer costs in order to maximize the developmental impact of diaspora earnings.
