How Kenyans in U.S. Helped Strengthen Shilling Against the Dollar

Jukwaa

🇰🇪 Breaking It Down

The inflows form part of a major Ksh931.8 billion sent to Kenya during the period under review, according to the 2025 Remittances Household Survey Report released by the Kenya National Bureau of Statistics (KNBS) on Tuesday.

The survey, the first nationwide household assessment of remittances in the country, shows that the total inflows consisted of Ksh848.3 billion in cash transfers and Ksh83.5 billion in in-kind remittances.

North America was the leading source region, driven mainly by the United States, which accounted for Ksh388.1 billion in cash transfers and Ksh17.3 billion in in-kind contributions.

📌 What You Need to Know

The scale of inflows from the U.S. continues to position diaspora earnings as a key component of Kenya’s foreign exchange earnings and contributes to stability in external sector performance.

“The USA emerged as the biggest source of remittances at 43.5 per cent. The country should put efforts to retain these important sources as well as seek ways to also bring on board other countries as sources of remittance inflows,” the survey read in part.

The Middle East also accounted for notable inflows, with Saudi Arabia, Qatar, and the United Arab Emirates providing significant contributions, pointing to a widening spread of Kenya’s remittance sources.

Saudi Arabia and Qatar, alongside the United States, recorded some of the fastest transfer times, with many transactions arriving on the same day, supported by improved global payment systems.

Diaspora remittances remain among Kenya’s most consistent sources of foreign currency, alongside exports, tourism, and foreign direct investment, supporting overall foreign exchange availability in the market.

These inflows have also supported the Kenyan shilling over the past two years, alongside stronger export earnings and external financing, easing pressure on the currency in global markets.

📰 Source: Kenyans.co.ke

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