At 0759 GMT, commercial banks quoted the shilling at 103.25/45 per dollar, compared with 103.45/55 at Monday's close.
Central Bank of Kenya data shows that diaspora remittances from Kenyans living abroad hit a record high of over $176.098 million in September, breaking a record of $166.411 million set in August.
This was $32.9 million higher compared with the monthly figure one year ago.
Since January, Kenyans living abroad have sent home more than $1.382 billion, making remittances Kenya's highest foreign exchange earner -- above tourism and coffee exports which brought in $981.9 million and $184.68 million respectively in 2016.