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The United Kingdom has overtaken Saudi Arabia to become Kenya’s second-largest source of diaspora remittances in 2025, ending a three-year period during which the Gulf state held the position, according to data from the Central Bank of Kenya.
Inflows from the UK rose by 0.72 percent to $360.2 million (Sh46.47 billion), while remittances from Saudi Arabia declined sharply by 25.06 percent to $302.1 million (Sh38.97 billion).
Diaspora groups have attributed the slowdown in remittances from Saudi Arabia to higher transaction costs following the introduction of a 15 percent value-added tax (VAT) on remittance service fees, as well as labour market reforms that disrupted employment contracts and wages.