Kenya remittances rise 16.2% in July to hit Sh56.3 billion as shilling remains stable
Remittance inflows to Kenya rose sharply in July, providing a boost to the country’s foreign exchange earnings and balance of payments despite a decline in cumulative inflows over the past 12 months.
Data from the Central Bank of Kenya (CBK) shows that remittances increased by 16.2 per cent to $436.6 million (Sh56.3 billion) in July 2026, up from $375.6 million (Sh48.4 billion) recorded in June.
The increase was driven by higher inflows from key source markets, highlighting the continued importance of diaspora money to Kenya’s foreign exchange position.
Despite the monthly increase, cumulative remittance inflows for the 12 months to July stood at $4.987 billion (Sh643.2 billion), a 1.8 per cent decline from the $5.080 billion (Sh655.2 billion) recorded over the corresponding period in 2025.
“Remittances remain a critical source of foreign exchange for Kenya, helping support the balance of payments and providing foreign currency liquidity to the economy,” CBK said it its weekly bulletin.
The latest increase comes as the Kenya shilling continues to show relative stability against major international and regional currencies.
During the week ending August 13, the shilling exchanged at an average of Sh129.40 against the US dollar, compared with Sh129.41 on August 6.
The stability of the local currency has come alongside an adequate stock of foreign exchange reserves, which provide a buffer against external shocks and help support the country’s ability to meet its international payment obligations.
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CBK data shows that foreign exchange reserves stood at $15.245 billion (Sh1.97 trillion) as of August 13, equivalent to 6.3 months of import cover.
The reserve level remains comfortably above the central bank’s statutory requirement to endeavour to maintain a minimum of four months of import cover.
The combination of higher monthly remittance inflows, a stable exchange rate and strong foreign exchange reserves points to continued resilience in Kenya’s external position, even as the country records a modest decline in diaspora inflows over the longer 12-month period.
For households, remittances remain an important source of income, while at the macroeconomic level they provide foreign currency that helps finance imports and ease pressure on the shilling.
The July increase therefore offers some relief to Kenya’s foreign exchange market, although the decline in the 12-month cumulative figure suggests that sustained growth in remittance inflows will remain important for strengthening the country’s external account.
