Kenya Banks on Remittance Recovery as Gulf Rule Changes Squeeze Senders

The Central Bank of Kenya projects diaspora remittances will grow 4 percent to about 5.24 billion dollars in 2026, betting on a rebound from Saudi Arabia after a 25 percent drop last year. The decline followed Saudi labour reforms and a new 15 percent VAT on money-transfer services. The shilling has held near 129 per dollar.

What this means for you: Gulf-based Kenyan workers should factor the Saudi VAT into transfer costs and compare providers; the cheapest cash-pickup option may no longer be cheapest after tax.