Kenya Underreported Diaspora Remittances By A Massive Sh280 Billion. Here Is What The New Survey Shows

Kenyans living abroad are sending home far more money than official statistics had previously captured. A new survey estimates total remittance inflows reached Sh931.8 billion in the year to May 2025, with roughly Sh280 billion moving through channels that were not reflected in Central Bank records.

The 2025 Remittances Household Survey, the first of its kind in Kenya was conducted by the Kenya National Bureau of Statistics, the Central Bank of Kenya, and FSD Kenya. Its findings significantly exceed the Sh651.2 billion that the CBK recorded through formal channels such as banks and money transfer operators during the same period.

So where was the missing remittances? It moved through informal routes: cash handed to relatives during visits, goods sent through travellers, and other transfers that never passed through the formal financial system. As FSD Kenya Chief Executive Rashmi Pillai described it, the survey uncovered “the invisible 40 percent” hidden in these channels. Of the total remittances, Sh848.4 billion arrived as cash, while Sh83.5 billion came in-kind, in the form of goods rather than money.

For many households, these funds are less about wealth creation and more about meeting essential needs. The survey found that remittances were primarily used for:

• Food and household goods – 73.1%
• Education – 31.4%
• Medical expenses – 23.9%
• Clothing – 19.8%
• Rent and utilities – 9.3%
• Ceremonies such as funerals and weddings – 8.8%

The inflows also deepen financial inclusion, although participation remains concentrated in basic financial products. Among remittance receiving households the most commonly held financial products were:

• Mobile bank account – 82.5%
• Bank account – 55.4%
• Mobile money account – 52.0%
• Insurance – 32.4%
• Chama or group account – 22.5%
• Pension – 22.0%
• SACCO account – 18.7%
• Digital loan app – 13.3%
• Securities such as shares and bonds – 6.5%
• Microfinance Institution account – 5.4%
• Crypto account – 1.6%
  The picture that emerges is clear: Kenya’s diaspora is playing a critical role in supporting household consumption, education, healthcare, and financial inclusion. Yet only a small share of these inflows is finding its way into long term wealth building assets such as stocks, bonds, and other investments.