Kenyans living and working abroad sent home a record-breaking $414.3 million (Sh53.5 billion) in July 2025, the highest monthly inflow ever recorded and the strongest performance so far this year.
The surge is attributed to easing inflation in the United States, Kenya’s largest remittance source.
According to the Central Bank of Kenya (CBK) weekly bulletin, July inflows rose 9.6% year-on-year, up from $378.1 million (Sh48.8 billion) in July 2024.
“Remittance inflows to Kenya totalled USD 410.1 million in July 2025 from USD 414.3 million in July 2024, a decrease of 1.0 percent . The 12-month cumulative inflows to July 2025 rose by 11.1 percent to USD 5,080 million compared to USD 4,572 million in a similar period in 2024,” CBK stated.
The July figure also surpassed January’s high of $412.4 million, setting a new benchmark for 2025.
US Inflation Eases, Boosting Disposable Income
The record inflows coincide with a fourth consecutive month of easing US inflation, which has expanded disposable income and strengthened remittance capacity. Analysts expect the Federal Reserve to lower interest rates in the coming month, further supporting outbound flows.
“While uncertainty is high, we expect that the US will continue to negotiate, using the threat of reciprocal tariffs as leverage. To date, hard US inflation data has shown only limited effects from the tariffs, suggesting that these effects are largely still in the pipeline,” according to the NCBA Monthly Economic Report—July 2025.
In addition, the CBK noted that “Inflation concerns persisted during the week ending August 14, 2025, as July data for the US showed headline inflation was 2.7 per cent year-on-year, while core inflation increased to 3.1 per cent driven primarily by rising costs for shelter, healthcare services, and airline fares, partially offset by lower gasoline prices.”
Kenya and other jurisdictions, including the UK, have already responded by cutting base lending rates to ease domestic cost pressures. Earlier this month, the CBK lowered its benchmark rate by 25 basis points to 9.50%, from 9.75% set in June 2025.
US Dominates Kenya’s Remittance Landscape
The United States remained Kenya’s top remittance source in July, accounting for 52% of total inflows.
“The cumulative inflows for the 12 months to July 2024 remained steady at USD 4,572 million (Sh590 billion) compared to USD 4,076 million (Sh526 billion) in a similar period in 2023, an increase of 12.2 percent,” CBK noted.
“Remittance inflows continue to support the current account and the foreign exchange market.”
With remittances now a cornerstone of Kenya’s foreign exchange earnings, the July spike offers a strong buffer for the country’s balance of payments and currency stability.
