Income diversification constitutes an important livelihood strategy for rural households in developing countries in general and Sub-Saharan Africa in particular. Using data collected by the World Bank in rural Kenya, the estimated results from the bivariate and 2SLS models show that the average partial effects of remittances on activity choices indicate that household propensity to seek non-cropping income was higher for households with external remittances than those with internal remittances. In addition, poor households diversified less than better-off households, implying that diversification is viewed more as a means of wealth accumulation than a survival strategy in this part of Kenya.