Concern as Kenyans in U.S., Saudi Arabia Cut Money Sent Home

Jukwaa

🇰🇪 Breaking It Down

Speaking at the Monetary Policy Committee (MPC) meeting on Thursday, October 8, Thugge said the decline had eased in recent months, with remittances showing some recovery over the last two months.

“The remittances have remained resilient, although from the twelve months to August 2026 we saw a decline of 1.3 per cent. In the last two months we have seen some recovery, and between January and August the decline was -0.7,” Thugge said.

Thugge attributed the overall decline to reduced remittance inflows from the U.S. and Saudi Arabia, two key sources of dollars sent home by Kenyans working abroad.

📌 What You Need to Know

The U.S. has always been Kenya’s biggest source of diaspora remittances, accounting for about 43.5 per cent of cash remittances received by Kenyan households.

Saudi Arabia has also been a major source of remittances, although money sent from the country has fallen amid changes in labour laws and policies affecting foreign workers, including Kenyans.

The drop in U.S. remittances has also occurred amid increased immigration enforcement since President Donald Trump took office in January 2025, with some Kenyans deported from the U.S. in recent months.

The deportations could have contributed to lower remittances by reducing the number of Kenyans earning and sending money home, although CBK has not attributed the drop in U.S. remittances to the deportations.

Despite the slowdown, Kenya’s diaspora remittances are projected to rise from about USD5.037 billion (Ksh653.8 billion) in 2025 to USD5.073 billion (Ksh658.5 billion) in 2026 and further to USD5.22 billion (Ksh677.4 billion) in 2027.

Thugge said remittances had remained an important source of foreign exchange and that diversified inflows had helped support the stability of the Kenyan shilling despite global economic uncertainties.

📰 Source: Kenyans.co.ke

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