Money sent home by Kenyans living abroad is keeping families afloat rather than building lasting wealth, according to a new household survey released by the Kenya National Bureau of Statistics.
The 2025 Remittances Household Survey estimates that households received about Sh931.8 billion from relatives overseas between June 2024 and May 2025. It is a staggering sum, comparable to some of the country's biggest foreign exchange earners, and it underlines just how central the diaspora has become to the Kenyan economy.
The striking part is where the money goes. The survey found that roughly 73.1 percent of recipient households spent the funds on food and everyday household goods. Education took about 31.4 percent and healthcare about 23.9 percent, as families leaned on relatives abroad to cover school fees and hospital bills. Only about 2.2 percent of households channelled the money into investment, the kind of spending that could create jobs or generate future income.
Most of the cash also arrived as exactly that, cash. The survey found that around 91 percent of inflows came through money transfers rather than goods, which suggests families are using the funds to plug immediate gaps in their budgets.
The findings paint a picture of remittances as a vital cushion against the rising cost of living, but also as a missed opportunity. Economists have long argued that if even a slightly larger slice were steered into savings, land, housing or small businesses, the long term payoff for households and the wider economy could be significant.
For now, the data confirms what many families already know from experience. The money from abroad is not a luxury but a lifeline, spent first on the basics that keep a household running.
Source: [People Daily](https://peopledaily.digital/business/kenyan-families-spend-diaspora-money-mostly-on-food-education-and-hospital-bills-knbs)

