Remittances from Kenyans living in Australia surged by an impressive 48 percent in the first half of 2025, reaching Sh14.58 billion, according to new data from the Central Bank of Kenya (CBK). This sharp rise has seen Australia leapfrog Saudi Arabia and Germany to become one of the top sources of remittances to Kenya, marking it as the fastest-growing remittance corridor over the six-month period.
The remarkable growth reflects the expanding Kenyan diaspora in Australia and rising demand for skilled labour in high-growth sectors such as healthcare, aged care, and construction. The shift underscores a broader trend of Kenyans increasingly moving to non-traditional destinations in search of better job opportunities and quality of life.
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U.S. Still Leads, but Australia Rising Fast
Despite Australia’s rapid growth, the United States maintained its position as the dominant source of Institute of Economic Affairs. Kenyans in the U.S. sent home $1.35 billion (Sh174.47 billion) between January and June 2025, representing a 7.7 percent increase from the $1.25 billion (Sh161.55 billion) sent in the same period last year.
The U.S. accounted for over 55 percent of total diaspora remittances in the first half of 2025, a testament to its long-standing role as the primary destination for skilled Kenyan migrants.
Australia’s Surge Reflects Labour Market Trends
Australia’s growing contribution is tied closely to the country’s ongoing labour shortages, which have created new migration pathways for skilled foreign workers. Kenyan professionals—particularly in nursing, engineering, construction trades, and allied health—have increasingly found opportunities in Australia’s expanding economy.
“Migration to Australia has become a strategic move for many Kenyans, particularly young professionals and students transitioning into permanent residency,” said Dr. Patrick Njoroge, Governor of the Central Bank of Kenya. “As these communities become more financially stable, their capacity to send money home grows.”
Improved Access and Financial Technology
In addition to labour demand, the rise in remittances from Australia has been supported by:
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- Faster and cheaper digital remittance platforms, including mobile apps and fintech services tailored for African migrants.
- Favourable exchange rates and reduced transfer fees, which have encouraged higher remittance volumes.
- Increased financial literacy and diaspora investment awareness among Kenyans abroad.
Broader Economic Implications
Remittances are Kenya’s largest source of foreign exchange, surpassing traditional exports like tea and horticulture. They play a vital role in supporting household income, education, healthcare, and real estate investments, especially in rural and peri-urban areas.
Total diaspora remittances to Kenya for the first half of 2025 are expected to exceed Sh310 billion, according to CBK estimates — a trend that strengthens the shilling and eases pressure on Kenya’s balance of payments.
Government and Policy Outlook
The Kenyan government has expressed interest in formalizing labour migration agreements with countries like Australia to further streamline recruitment and protect migrant workers. Additionally, there is growing advocacy for diaspora bonds and investment vehicles to tap into remittance inflows for infrastructure and development projects.
“Australia’s emergence as a key remittance partner is a wake-up call to diversify our diaspora engagement,” said an economist at the Institute of Economic Affairs (IEA). “We must seize this opportunity to develop strategic bilateral ties and policies that benefit both migrant workers and the Kenyan economy.”
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