CBK Data Shows Dip in Diaspora Remittances as Kenyans Brace for U.S. Levy

The Central Bank of Kenya (CBK) has reported a marginal slowdown in diaspora remittances, heightening concern over household income and the country’s foreign exchange reserves.

According to the CBK’s weekly bulletin released Wednesday, remittance inflows stood at USD 426.1 million (KSh55 billion) in August 2025 a 0.2% drop from USD 427.2 million in August 2024.Despite the month-on-month slip, cumulative inflows for the 12 months to August 2025 rose by 9.4%, reaching USD 5.08 billion.

Analysts warn that U.S. immigration clampdowns and a planned remittance tax could worsen the trend. The “One Big Beautiful Bill Act,” signed by President Donald Trump on July 4, imposes a 1% levy on transfers from the U.S. starting January 2026 a move expected to reduce volumes or push senders to informal channels.

The United States accounts for more than half of Kenya’s remittance inflows. CBK has launched a Remittance Housing Survey, in partnership with FSD Kenya and the KNBS, to gather insights from households on how overseas transfers are used. The study is due for completion in September.

Remittances remain Kenya’s top source of foreign exchange, underpinning the shilling and supporting family livelihoods, but policy shifts abroad are now casting uncertainty over future inflows.