UK Slips to Eighth as Kenya’s Diaspora Remittance Sources Shift

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The UK has dropped to eighth among Kenya's top diaspora remittance sources, overtaken by Germany, Australia and South Sudan.
The UK has dropped to eighth among Kenya's top diaspora remittance sources, overtaken by Germany, Australia and South Sudan.

NAIROBI, Kenya — The United Kingdom has lost its long-standing position as one of Kenya’s leading sources of diaspora remittances, with new data showing the country has fallen to eighth place behind emerging destinations including Germany, Australia and South Sudan.

According to a joint survey by the Central Bank of Kenya (CBK), the Kenya National Bureau of Statistics (KNBS) and Financial Sector Deepening (FSD) Kenya, Kenyans living in the UK sent home Sh35.9 billion in cash and in-kind remittances during the 12 months to May 2025.

The latest findings point to changing migration patterns as more Kenyans relocate to countries beyond traditional destinations such as the UK and the United States in search of employment, education and business opportunities.

US Maintains Lead

Despite the shifts, the United States remained Kenya’s largest single source of diaspora remittances, with inflows totalling Sh405.4 billion over the review period.

It was followed by:

  • Germany – Sh86 billion
  • Australia – Sh62.6 billion
  • Saudi Arabia – Sh49.2 billion
  • Qatar – Sh40.5 billion
  • Spain – Sh36.8 billion
  • South Sudan – Sh36.8 billion
  • United Kingdom – Sh35.9 billion

The rankings indicate that several non-traditional destinations are playing an increasingly significant role in supporting Kenyan households through remittances.

Migration Trends Evolving

Analysts attribute the UK’s declining share partly to changing migration flows, with growing numbers of Kenyans securing employment opportunities in continental Europe, the Middle East and Australia.

Countries such as Germany have become attractive destinations due to increased demand for skilled workers, while bilateral labour agreements have also expanded opportunities for Kenyans in Gulf states.

Australia has similarly emerged as a key destination for professionals and students, contributing to higher remittance flows.

The rise of South Sudan among Kenya’s top remittance sources reflects increasing cross-border trade, regional employment and business ties between the two neighbouring countries.

Remittances Remain Economic Lifeline

Diaspora remittances continue to be one of Kenya’s most important sources of foreign exchange, supporting millions of households through spending on education, healthcare, housing and investment.

The funds also play a crucial role in strengthening the country’s foreign exchange reserves and cushioning the economy against external shocks.

In recent years, remittances have consistently outperformed traditional foreign exchange earners such as tourism, tea exports and horticulture.

The latest data underscores how Kenya’s diaspora landscape is evolving, with emerging migration destinations increasingly shaping the flow of money back home as labour mobility expands across Europe, the Middle East, Africa and the Asia-Pacific region.

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