Kenya's UK Senders Overtake Saudi Arabia as Gulf Labor Rules Bite Remittances

Kenyan diaspora remittances hit a record US$5.04 billion in 2025, and the Central Bank projects about US$5.24 billion in 2026 — but the map of where the money comes from is shifting. The United Kingdom has overtaken Saudi Arabia as the second-largest source behind the US, after Saudi labor reforms and a new 15% VAT on transfer services cut Gulf inflows by roughly a quarter. Remittances now cover an estimated 40% of Kenya’s goods trade deficit and help hold the shilling near 129–135. For Kenyans abroad, the takeaway is structural: professional migration to the UK and North America is becoming the steadier channel, while the Gulf corridor turns volatile.

Source: Central Bank of Kenya; Business Daily; TUKO; Streamline Feed.