The money sent home by Kenyans abroad decreased at the start of the year. Central Bank of Kenya data shows remittances dropped to $427.4 million (Sh55.5 billion) in January from $445.4 million (Sh57.9 billion) in December.
Despite the decline, the amount was higher than January 2024’s $412.4 million (Sh53.6 billion). Analysts warn remittances may fall further if President Donald Trump enforces strict immigration and funding policies.
Over the 12 months to January 2025, total remittances grew by c. The US remained the largest source, contributing 53.2%. This helped boost Kenya’s foreign exchange reserves to $9.4 billion, meeting the Central Bank’s four-month import cover requirement.
Meanwhile, short-term government securities saw reduced investor interest, with bids falling to 2,526 against the targeted 4,000 due to declining returns. Banks, following regulatory directives to cut lending rates, are expected to shift focus to issuing more loans, further impacting short-term state securities.
