Kenya's bank notes. Photo/courtesy.
August 9 – Remittances have become Kenya’s largest source of foreign exchange, surpassing other sources like agricultural exports, tourism and foreign investments since 2015, with an estimated population of 3 million Kenyan nationals who live and work abroad.
Kenya has recorded an increase remittance inflow in 2024 compared to the previous year according to the Central Bank of Kenya recent data.
Beginning in January 2024, amount Ksh53.2 billion ($412.4 million) was accounted for, making an 18 percent increase compared to January 2023.
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In June 2024, the remittance inflows reached Ksh48 billion ($371.6 million), which is a 7.4 percent increase compared to the Ksh44.6 billion ($345.9 million) recorded in June 2023.
“The cumulative inflows for the 12 months to February 2024 totaled $4,330 million {approximately Ksh558 billion} compared to $4,026 million {approximately Ksh519 billion} in a similar period in 2023, an increase of 7.5 percent,” said CBK in the weekly bulletin.
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United States remains the largest source of remittances in Kenya as it accounts 54 percent of the inflows in 2024. Saudi Arabia have also shown a significant growth due to the high number of Kenyans working in the middle east over the recent years.
Countries like Germany and United Kingdom also emerging on the top list, with continuing growth of Kenyan community in the two European nations.
The significant growth that has been witnessed shows the importance of diaspora remittances to Kenya’s economy.
