Kenya is experiencing a surge in real estate demand, fueled by remittances from its diaspora communities. According to a report by Knight Frank released on February 3, 2026, money sent home by Kenyans living abroad rose from KSh 440 billion in 2024 to KSh 593 billion in the first eleven months of 2025, a 34.8 percent increase.
These inflows are not only supporting household welfare but are also driving investment in the property sector, particularly in mid-market residential housing.
Remittances have long been a stable source of foreign currency for Kenya, helping to strengthen the value of the shilling and providing some stability amid global economic uncertainty. For households, diaspora funds cover essential expenses such as school fees, medical bills, and daily living costs, while also enabling small investments that ease financial pressure across many families.
The increase in diaspora remittances has had a pronounced impact on Kenya’s housing market. Many Kenyans living abroad are channeling funds into home purchases, including off-plan apartments, townhouses, and smaller commercial units. Knight Frank notes that this demand has encouraged property developers to tailor projects specifically to the needs and budgets of diaspora buyers, particularly in urban areas with high population density and strong economic activity.
Developers report that a significant portion of their units—sometimes more than half—are purchased by diaspora clients before construction is complete. To accommodate this trend, they are offering flexible payment plans, staged payment options, and clear documentation, making it easier for buyers abroad to participate in the market. Technology has further facilitated this process, allowing diaspora clients to verify land ownership, track construction progress, manage payments, and oversee rental properties online, eliminating much of the logistical challenge of investing from abroad.
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The Knight Frank report highlights that diaspora inflows not only provide crucial foreign exchange but also support national economic output by boosting residential real estate development. The mid-market housing segment, in particular, has benefited from rising demand, with developers increasingly targeting projects that are affordable, secure, and well-serviced to meet diaspora preferences.
With about 3 million Kenyans living abroad, primarily in the United States, United Kingdom, and the Middle East, the flow of remittances continues to be a vital economic driver. Many expatriates work in sectors such as healthcare, education, construction, and domestic services, sending funds home regularly. In the first quarter of 2025 alone, diaspora remittances exceeded KSh 160 billion, reflecting both steady family support and growing interest in investing in property back home.
Looking ahead, Knight Frank predicts that demand from high-net-worth individuals, expatriates, and diaspora buyers will remain a key driver of Kenya’s real estate market in 2026. The combination of financial capacity, familiarity with digital tools, and desire to secure tangible assets in their home country is expected to continue fueling residential construction, particularly in mid-tier developments that balance affordability with quality and security.
In summary, Kenya’s diaspora is playing a critical role in strengthening both household resilience and national economic growth. By driving demand for residential property, sending steady remittances, and leveraging technology for cross-border investment, Kenyans abroad are shaping the country’s real estate market while reinforcing the shilling and supporting overall economic stability. The trend reflects the growing influence of the diaspora in shaping investment patterns and sustaining long-term development in Kenya.
