Kenyan Expatriate Remittances Drop 3.8% Following Trump Tariffs

• President Donald Trump introduced a 1% tariff on goods sent abroad after signing the Big Beautiful Bill into law
• Following the implementation of the tax in January 2026, the value of remittances from people living abroad in Kenya decreased, as the US is one of the main sources
• Geo-economist Aly-Khan Satchu told TUKO.co.ke that the tax will not change the direction of remittances from North America

Remittances sent by Kenyan expatriates decreased by 3.8% in January 2026, compared to January 2025.

This is according to the Central Bank of Kenya (CBK), which highlighted the recent financial and financial developments in the country.

What was the value of money sent by Kenyans from abroad in January 2026?

The CBK report showed that remittances by Kenyans from abroad decreased from 427.4 million dollars (KSh 55.05 billion) in January 2025 to 411.3 million dollars (KSh 52.9 billion) in January 2026.

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This represented a drop of 16.1 million dollars (KSh 2.07 billion) or 3.8%.

“Kenya’s inflows reached $411.3 million in January 2026 from $427.4 million in January 2025, a decrease of 3.8%,” the bank said.

However, the banking regulator said that remittances from people living abroad last year increased by 1.2% from 4,960 million dollars (KSh 640.18 billion) to 5,021 million dollars (KSh 648.5 billion).

“Total income for the 12 months to January 2026 increased by 1.2% to $5,021 million compared to $4,960 million in the same period in 2025. Cash inflows remain an important source of foreign exchange earnings and continue to support the balance of payments,” CBK revealed.

When did the US Diaspora Tax go into effect?

The Great Bill, which imposed an excise tax on remittances, was signed into law by the President of the United States Donald Trump in July 2025.

Remittance service providers are required to submit transaction returns since the new tax came into force on Thursday, January 1, 2026.

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Remittance service providers were required to make the first semi-monthly deposit on Thursday, January 29, 2025, according to the US Internal Revenue Service (IRS).

What are the implications of Trump’s immigration tax?

Some money transactions are subject to a 1% fee from the remittance tax.

If you make an international cash transfer from the US, 1% of the amount will be deducted.

That means less money for your family and more for the taxman.

However, geo-economist Aly-Khan Satchu opined that the tax will not have a significant impact.

“I don’t think the 1% additional tax will change the trend of remittances from North America to Kenya from North America. In general, people living outside North America are satisfied and settled,” he told TUKO.co.ke.

What kind of tax did Trump impose on Kenya?

TUKO.co.ke previously reported that Trump used the International Economic Emergency Act (IEEPA) to implement his new trade policy.

Kenya was one of the countries with the lowest tax rate (10%) due to the protectionist tax reform implemented by the Republicans.

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Trump claimed that the tariffs were meant to replace federal tariffs and support the US manufacturing sector.

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Source: TUKO.co.ke