Kenya Remittances Shift as UK Surges Past Saudi Arabia, CBK Data Shows.

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The United Kingdom has emerged as Kenya’s second‑largest source of diaspora remittances in 2025, according to new data from the Central Bank of Kenya, marking the end of a three‑year period in which Saudi Arabia held that position. Remittance inflows from the UK recorded a modest rise to $360.2 million (Sh46.47 billion), while transfers from Saudi Arabia declined to $302.1 million (Sh38.97 billion). Diaspora organisations attribute the slowdown in Gulf inflows to higher transaction costs following the introduction of a 15% VAT on remittance service fees, as well as labour‑market adjustments that affected employment contracts and earnings.

CBK data indicates that average monthly remittances from Saudi Arabia fell from $33.59 million in 2024 to $25.17 million in 2025, with some workers opting for local savings or informal transfer channels. The United States maintained its position as Kenya’s leading remittance source, contributing 54.23% of the total $5.04 billion received in 2025. However, analysts note that future inflows may face headwinds following the introduction of a 1% excise tax on outbound remittances in the US, effective January 1, 2026. @mudavadi.musalia @franc_isatwoli
@state.house.kenya @roseline.njogu @korir_singoei
Congratulations to Kenyans in the UK for Strengthening Inflows and Expanding Opportunities that help build Kenya’s Economy.