Kenyan families increasingly depend on diaspora remittances for survival

A new survey reveals the growing importance of diaspora remittances for Kenyan households. More than one-fifth of recipient families now rely on these funds as their primary source of income. The 2025 Remittances Household Survey estimates total inflows reached Sh931.8 billion in the year to May 2025. The survey shows that over 73 percent of households used remittances to buy food and essentials. Education came next, with many families depending on relatives abroad to cover school fees and learning costs. Healthcare also ranked high, as medical expenses increasingly strain household budgets.

Remittances have evolved beyond a source of foreign exchange. They now act as an informal welfare system, supporting food security, education, and healthcare at the household level. However, official data captures only part of the picture. An additional Sh280.6 billion arrived through informal channels and non-cash support, meaning the true impact has been underestimated.

Investment received the smallest share of spending. Only a few households directed remittances toward real estate or other long-term assets. The findings highlight how diaspora funds sustain daily needs for many Kenyan families. Food, education, and healthcare remain the top priorities for spending. Informal transfers significantly boost the overall contribution of remittances to household welfare.