High transaction costs remain the primary hurdle for Kenyans receiving diaspora inflows.
This is according to the 2025 Remittances Household Survey Report jointly published by the Central Bank of Kenya (CBK), KNBS, and FSD Kenya.
An overwhelming 83.3% of respondents cited high fees as a major challenge, significantly overshadowing all other operational bottlenecks.
Beyond cost, the data highlights several administrative and logistical friction points.
Long transfer times impact 16.2% of recipients, while stringent Know Your Customer (KYC) regulations and inaccessible services trouble 14.4% and 14.1% respectively.
Concerns regarding privacy (11.6%), unfavourable exchange rates (10.1%), and physical distance to service points (10.0%) further complicate access.
Minor infrastructural barriers include insecurity (6.3%), limited platform interoperability (3.9%), and slow interbank transfers (2.7%).
These findings emphasise an urgent need for targeted regulatory interventions to lower costs and streamline the digital financial ecosystem.
