Diaspora remittances rise 4.5% to $438.5m in September as Europe inflows climb

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Kenyans abroad sent home $438.5 million in September 2026, up 4.5 percent from $419.6 million in the same month last year, according to the Central Bank of Kenya (CBK).

The figures, released in the regulator’s weekly bulletin, show a fall from August, when inflows reached $451.8 million. Over the 12 months to September, cumulative remittances declined by 1.0 percent to $5,032 million, compared with $5,080 million in the previous 12-month period.

“Remittance inflows remain a key source of foreign exchange earnings and continue to support the balance of payments,” the CBK said.

Europe and the rest of the world offset North America

CBK data by source show a shift in where the money is coming from. Inflows from North America, still the largest corridor, fell to $215.5 million in September from $245.9 million a year earlier, a drop of about 12.4 percent.

Remittances from Europe rose to $97.7 million from $81.6 million, an increase of about 19.7 percent. Inflows from the rest of the world climbed to $125.3 million from $92.1 million, up about 36 percent.

Monthly inflows have moved sharply this year. They reached $450.3 million in March before falling to $375.6 million in June, then recovered to $436.6 million in July and $451.8 million in August.

Reserves slip, shilling steady

Foreign exchange reserves stood at $14,689 million as of October 15, down from $14,736 million a week earlier and $15,088 million in mid-September.

“The foreign exchange reserves remained adequate at USD 14,689 million (5.9 months of import cover) as of October 15. This meets CBK’s statutory requirement to maintain at least 4 months of import cover,” the bank said.

The shilling traded at KSh129.81 to the US dollar on October 15, compared with KSh129.94 on October 8. Against regional currencies, it weakened against the Ugandan shilling, with one Kenyan shilling buying 30.46 Ugandan shillings on October 15 compared with 31.16 a week earlier. It gained slightly against the Rwandan and Burundian francs.

Strong appetite for government paper

Investors continued to pile into government securities. The Treasury bill auction of October 15 received bids of KSh68.5 billion against an advertised KSh28 billion, a performance of 244.6 percent.

The average rate on the 91-day bill eased to 8.750 percent from 8.762 percent the week before, while the 364-day bill edged up to 9.038 percent from 9.035 percent.

A reopened 30-year Treasury bond auction on October 14 drew bids of KSh83.8 billion against KSh50 billion on offer, a performance of 167.7 percent.

Money markets remained liquid, with commercial banks holding average excess reserves of KSh20.5 billion above the 3.25 percent cash reserve ratio. The interbank rate, KESONIA, held at 8.75 percent.

Activity in the interbank market picked up during the week. The average number of daily deals rose to 28 from 17, while the average value traded increased to KSh14.9 billion from KSh5.9 billion.

Bond turnover in the domestic secondary market fell 18.22 percent. In the international market, yields on Kenya’s Eurobonds decreased by 5.79 basis points on average, the CBK said.

Stocks fall

At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 indices fell 2.57 percent, 2.52 percent and 1.97 percent respectively in the week to October 15. Shares traded dropped 25.91 percent, although equity turnover rose 33.42 percent.

Global oil prices remained high. The CBK said Murban crude rose to $102.39 a barrel on October 15 from $101.67 a week earlier, citing supply risk concerns amid tensions in the Middle East.

The September inflation rate stood at 6.8 percent, according to the CBK.