The Kenyan Shilling has maintained stability against the U.S. dollar, holding firm below Ksh130 even as monthly diaspora remittance inflows experience fluctuations since the highs of March.
The latest Central Bank of Kenya (CBK) Weekly Bulletin data shows remittance inflows declined by USD 13.3 billion (about Ksh1.6 billion) to USD 438.5 million (about Ksh56.92 billion) in September 2026 compared to August.
CBK data released on Friday, October 16, reviewed by Kenyans.co.ke, indicate diaspora remittances in August 2026 stood at USD 451.8 million (about Ksh58.5 billion).
A review of the 12-month cumulative inflows revealed a slight dip of 1.0 per cent to USD 5,032 million compared to USD 5,080 million over the same period previously.
President William Ruto greeting Central Bank of Kenya Governor Kamau Thugge during the Central Bank of Kenya's 60th Anniversary in Nairobi on Thursday, September 17, 2026.
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CBK
In March 2026, remittance inflows surged to USD 450.3 million (approximately Ksh58.46 billion based on prevailing exchange rates).
At the time, experts said this initial peak reflected a wave of emergency family support as overseas workers responded to early global market jitters. However, subsequent months revealed structural softening across core sending corridors.
By June 2026, monthly inflows dropped to roughly USD 375.6 million (about Ksh48.76 billion), dragging year-to-date performance into negative territory for stretches of the third quarter.
The downward pressure prompted market analysts to warn of a potential contraction in annual flows and further pressure on the shilling.
The Kenyan shilling has held at or below Ksh130 against the U.S. dollar from around August 2024 until it slipped past Ksh130 in early April 2026, but has remained steady ever since.
Economists note that while the cumulative totals have eased slightly, the monthly baseline has established a resilient floor above the USD 400 million (about Ksh51.92 billion) mark.
This steady stream of foreign exchange continues to act as a primary shock absorber for the domestic economy.
The steadfastness of the local currency has surprised many market watchers who anticipated sharper depreciation amid high global energy prices and rising U.S. inflation.
Yet, Kenya's external buffers remain adequate at 5.9 months of import cover.
CBK reports placing foreign exchange reserves at USD 14,689 million (about Ksh1.91 trillion) as of October 15.
Treasury CS John Mbadi (centre), CBK Governor Kamau Thugge (left) and Treasury PS Chris Kiptoo (right) during bilateral talks with the World Bank’s Regional Vice President for Eastern and Southern Africa, Dr Ndiamé Diop, in Bangkok, Thailand on October 13, 2026.
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Treasury