Kenyans living and working abroad sent home less money during the first half of 2026, marking the country's weakest six-month remittance performance in nearly two decades.

🇰🇪 Breaking It Down

This is as per figures from the Central Bank of Kenya (CBK) on July 20, which show inflows dropped by 3.03 per cent to USD2.442 billion (approximately Ksh315.75 billion) between January and June, compared to USD2.518 billion recorded over the same period last year.

According to the report, the decline represents the biggest January-to-June setback since 2009, when the global financial crisis disrupted employment opportunities for many Kenyans overseas and sharply reduced cash sent back home.

The report attributes the slowdown to global economic uncertainty sparked by the U.S.-Iran conflict, which has spanned months and caused global economic shocks; a newly introduced U.S. levy on international money transfers; and stricter employment regulations in Saudi Arabia.

📌 What You Need to Know

The levy behind Kenya's remittance slowdown is the U.S. federal remittance transfer tax, introduced under the "One, Big, Beautiful Bill" (OBBBA), implying that a 1 per cent remittance transfer tax applies to remittances sent from the U.S. to recipients in foreign countries when the sender provides cash, a money order, a cashier's check, or other similar physical instrument.

Since enforcement began on January 1, the added transfer cost has prompted a noticeable drop in the volume and frequency of funds sent from the U.S. to developing economies worldwide, including Kenya.

Diaspora remittances now contribute roughly 3.7 per cent to the country's Gross Domestic Product (GDP), according to the 2026 report of the Kenya National Bureau of Statistics (KNBS) , making remittances Kenya's largest forex earner, outpacing tea, horticulture, and tourism.

Over 90 per cent of remittances arrive as direct cash transfers to families, serving as an important safety net, with the funds mainly covering food, medical expenses, housing, and school fees.

The reduction in remittances significantly impacts the aforementioned facets.

The U.S. remains Kenya's largest single remittance source, accounting for over 50 per cent of formal inflows. At the same time, the U.K., mainland Europe, and the Gulf Cooperation Council (GCC), including Saudi Arabia and the United Arab Emirates (UAE), comprise the remaining major cash corridors.

📰 Source: Kenyans.co.ke