Kenyans living and working abroad sent home $1.23 billion (Sh159.5 billion) during the first three months of this year, reflecting a slower growth rate of 2.2 percent compared to the 18.8 percent jump recorded over the same period last year when inflows stood at $1.21 billion (Sh156.9 billion).
The decline in growth momentum has coincided with the assumption of office by US President Donald Trump, whose administration has introduced sweeping anti-immigrant policies and threatened mass deportations.
The United States remains the single largest source of remittances to Kenya, contributing 53 percent as of last month, down from 56 percent in March last year.
Data from the Central Bank of Kenya (CBK) shows that Kenyans abroad sent home $427.4 million (Sh55.4 billion) in January, $382.2 million (Sh49.6 billion) in February, and $422.9 million (Sh54.8 billion) in March.
The cumulative total of funds remitted during the quarter represents a modest $26.4 million (Sh3.4 billion) increase from the same period last year but falls short of the $190.5 million (Sh24.7 billion) year-on-year rise recorded in Q1 2024.
Since taking office on January 20, President Trump has announced a series of controversial measures, including the US withdrawal from the Paris Climate Accord and the World Health Organisation, reduced funding for refugees, and new tariffs on imports.
Before these developments, diaspora inflows into Kenya had maintained a strong upward trend, supported by easing inflation in major economies and a slowdown in the Russia-Ukraine conflict that had disrupted global trade.
Remittances have remained Kenya’s top source of foreign exchange since 2015, ahead of tourism, foreign direct investment, and agricultural exports such as tea and coffee.