Business 25 June 2026 Daily Monitor (Uganda)
India and Kenya Top Destinations for Ugandan Outbound Remittances Despite Overall Decline
Despite a 20 percent drop in outbound remittances from Uganda in 2025, India and Kenya have maintained their positions as the primary destinations for funds sent abroad by residents and expatriates. The total value of money sent out of Uganda fell to Shs1.45 trillion ($402 million) from Shs1.8 trillion ($502 million) in the previous year. Source: https://www.monitor.co.ug/uganda/business/markets/india-kenya-lead-destinations-where-ugandans-send-money--5508478
Outbound remittances from Uganda saw a significant decrease in 2025, dropping by 20 percent to Shs1.45 trillion ($402 million) compared to Shs1.8 trillion ($502 million) in 2024, according to data from the Bank of Uganda. This decline in total value was mirrored by a reduction in transaction volumes, which fell from 2.66 million to 2.12 million.
The slowdown is attributed to increased economic pressures impacting both household and business budgets. Despite the overall reduction, India and Kenya remained the leading recipients of these funds, largely due to factors such as education, healthcare, and trade.
India received the largest share, approximately Shs460b ($124m), driven by tuition payments for Ugandan students, medical expenses, and business payments for imported goods like pharmaceuticals and vehicle parts. This highlights India’s growing significance as a hub for education, healthcare, and trade services utilized by Ugandans.
Kenya followed as the second-largest recipient, securing Shs164b ($44m). This flow is attributed to strong commercial and social ties, Kenya’s role as an East African financial hub, and cross-border trade, alongside family support and educational transfers.
The United States, United Kingdom, and Canada completed the top five destinations, receiving Shs157b ($42m), Shs103.6b ($28m), and Shs74b ($20m) respectively. Education expenses and support for family members already living abroad were key drivers for transfers to these nations.
The data also indicates a notable shift towards digital channels for remittances, which accounted for 57.5 percent of outbound transfers, surpassing cash-based methods. Banks processed the majority of these transactions (57.2 percent), followed by forex bureaus and payment service providers.
This report is based on data from the Bank of Uganda Cross Border Remittance Dashboard.