The study was designed to establish the magnitude of remittance flows, their uses, transfer costs and the challenges faced by recipients and senders. Head offices of the Central Bank of Kenya in Nairobi Head offices of the Central Bank of Kenya in Nairobi MONEY sent home by Kenyans working abroad is increasingly going into household welfare with most remittances being spent on education, food, healthcare, and housing.
These findings are contained in the 2025 Remittances Household Survey unveiled on Tuesday by the Kenya National Bureau of Statistics (KNBS), the Central Bank of Kenya (CBK) and FSD Kenya. The survey, the first in Kenya, paints a detailed picture of how billions of shillings sent by family members overseas are supporting livelihoods, reducing poverty and sustaining household consumption at a time when many families are grappling with high living costs.
The study was designed to establish the magnitude of remittance flows, their uses, transfer costs and the challenges faced by recipients and senders. One of the most significant findings is that a large share of remittance income goes toward meeting basic household needs.
Education emerged as a major beneficiary, with many families relying on money from relatives abroad to pay school fees, purchase learning materials and support university education. Healthcare also accounted for a substantial portion of remittance spending, highlighting the role diaspora funds play in helping families access medical treatment and health insurance.
Food purchases and general household upkeep ranked among the top uses of remittances, underscoring the importance of diaspora income in cushioning families against economic shocks. Many households reported using the funds to cover rent, utility bills and daily expenses that might otherwise be difficult to meet through local earnings alone.
The survey also found that remittances are increasingly being channelled into housing projects and asset acquisition. Some recipients reported investing in home construction, land purchases and property improvements, demonstrating that diaspora income is not only supporting consumption but also helping build household wealth.
Others used the funds to establish or expand small businesses, creating an additional source of income for their families. Another notable finding is the continued importance of informal remittance channels. While banks, money transfer operators and mobile money platforms remain the dominant methods of sending money, the survey captured significant transfers made through relatives, friends and travellers carrying cash or goods into the country.
This highlights a segment of remittance flows that has historically remained outside official statistics. The study further revealed that remittances are not always monetary. Many households reported receiving non-cash support in the form of clothing, electronics, household goods, educational materials and medical supplies from relatives living overseas.
Such in-kind transfers represent an often-overlooked contribution to household welfare and economic resilience. Beyond household-level impacts, the survey underscores the growing importance of remittances to Kenya’s economy. According to CBK data, remittance inflows reached a record Sh666.7 billion in 2024, equivalent to about four per cent of the country’s Gross Domestic Product (GDP).
This was a significant increase from Sh586 billion recorded in 2023, cementing remittances as one of Kenya’s leading sources of foreign exchange alongside tourism, tea and horticulture exports. The findings also point to changing patterns in financial inclusion.