Kenya loses Sh22bn in US diaspora cash on Trump tax
Remittances from Kenyans living in the US dropped by nearly 12.6% in the first half of 2026, marking the sharpest decline since data collection began. The decrease is attributed to US tax policies and economic instability stemming from the Iran conflict.
Why it matters
As the US is Kenya's largest source of diaspora cash, this significant drop impacts the national economy and highlights the vulnerability of developing nations to shifts in US fiscal policy.
The amount of money sent home by Kenyans living and working in the United States dropped by nearly Sh22 billion in the first half of 2026, as the fallout from President Donald Trump’s tax policies and the economic shocks of the Iran conflict took its toll.
New Central Bank of Kenya (CBK) data shows remittances from the US fell 12.6 percent to $1.178 billion (Sh152.50 billion) in the six months to June 2026, down from $1.348 billion (Sh174.50 billion) a year earlier.
This was the sharpest decline since Kenya began publishing remittance data by country.
The decline wiped out $169.5 million (Sh21.94 billion) from Kenya’s biggest source of diaspora cash and pushed US inflows to their lowest first-half level since 2021.
The US fall was more than twice the $76.4 million (Sh9.9 billion) decline recorded in Kenya’s total diaspora remittances, underlining America’s outsized role in the first-half contraction.
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