KNBS Survey Shows Most Diaspora Remittances Spent on Household Needs
Kenyan households received an estimated Ksh931.8 billion in remittances between June 2024 and May 2025, with most of the money spent on food, household goods, education and healthcare, according to a new survey by the Kenya National Bureau of Statistics (KNBS).
The 2025 Remittances Household Survey found that more than seven in ten households used remittances to pay for food and other household necessities, making consumption the main use of funds sent from abroad. Nearly one-third of recipients spent the money on education, while almost a quarter used it to cover medical expenses.
Only a small proportion of households directed remittances towards long-term investments. The survey found that 2.2 percent invested in real estate, while 2.6 percent used the funds for construction projects.
KNBS said participation in formal savings and investment products remained low despite the large volume of remittances entering the country. The agency noted that limited use of savings accounts, investment products and financial instruments points to significant untapped potential for using remittances to support wealth creation and deepen financial inclusion.
The findings challenge the common perception that money sent home by Kenyans living abroad is mainly used to buy land, build houses or start businesses. Instead, the survey suggests that remittances are largely used to meet immediate household needs.
The report comes as Kenya continues to promote its diaspora as an important contributor to economic growth. President William Ruto has frequently highlighted the role of remittances during international investment forums and engagements with Kenyans living abroad.
The survey shows that remittances continue to provide critical financial support for many households, helping families manage the rising cost of living and other economic pressures. However, the data indicate that only a limited share of the funds is being channelled into activities that could generate long-term assets or investment returns.
