Kenya Posts 5.2% First-Quarter Growth as Diaspora Cash Hits Record

Kenya’s economy grew an estimated 5.2% in the first quarter of 2026, supported by record diaspora remittances that touched about US$450 million in March, with the shilling holding near KES 129.5 to the dollar and the UK overtaking Saudi Arabia as the second-largest source of inflows. Remittances now cover roughly 40% of the country’s goods-trade deficit.

The practical headwind is the new US 1% remittance tax, which analysts expect to trim flows. For diaspora senders and property investors, a stable shilling reduces currency risk — but how you fund transfers (bank account versus cash) is now a money-saving decision.