Transaction /STAR ILLUSTRATION
High transaction costs remain the biggest barrier to sending and receiving money from abroad in Kenya, according to the 2025 Remittances Household Survey (2025 RHS).
The survey, conducted by the Kenya National Bureau of Statistics (KNBS) in collaboration with the Central Bank of Kenya (CBK) and Financial Sector Deepening Trust Kenya (FSDKenya), provides the first comprehensive nationwide assessment of household remittance inflows and outflows.
According to the findings, high transaction charges were the most significant challenge in receiving cash remittances, cited by 83.3 per cent of respondents.
“High cost was reported as the most significant challenge in receiving cash remittances and was reported by 83.3 per cent of respondents,” the report states.
The survey notes that elevated charges reduce the net value of remittances received, limiting their impact on household income, savings, and investment.
Other challenges in receiving money include long transfer times (16.2 per cent), strict Know-Your-Customer (KYC) identification requirements (14.4 per cent), and limited accessibility of service points (14.1 per cent).
Insecurity (6.3 per cent) and mistrust of service providers (2.9 per cent) were also reported.
The report further warns that while transfer channels are available, affordability and accessibility remain the main constraints.
“Overall, these findings indicate that the primary obstacles to receiving remittance inflows are not the availability of transfer channels, but rather their affordability and accessibility,” the survey notes.
For remittances sent abroad, high transaction costs were again identified as the leading challenge, cited by 67.3 per cent of respondents.
“The dominant challenge faced while sending cash remittances was high transaction costs, which were reported by 67.3 per cent of respondents,” the report states.
Other challenges included long transfer times (7.0 per cent), inaccessibility of services (2.8 per cent), and other unspecified issues (14.5 per cent).
The survey warns that such constraints may push users toward informal transfer channels, which could undermine financial security and reduce the country’s ability to track cross-border financial flows.
“Such limitations may therefore cause cash senders to opt for informal methods, thereby affecting the integrity of finances, the security of the end consumer, and the capacity of the nation to track capital flows across the borders,” it notes.
The report also highlights vulnerabilities in informal channels, including mistrust (60.4 per cent), lack of privacy (20.8 per cent), and insecurity (14.1 per cent), underscoring the trade-offs between cost, access, and security in remittance systems.
The survey covered all 47 counties and targeted individuals who had sent or received remittances within 12 months preceding the survey period (June 2024 to May 2025).
