top of page

Kenyan Diaspora Sends Record $4.94 Billion in 2024, Surpassing Projections

Kenyans abroad have set a new milestone by sending home an impressive $4.94 billion (Sh637.3 billion) in remittances in 2024, surpassing the Central Bank of Kenya's (CBK) projected Sh600 billion by 18%. This marks a significant increase from the Sh540.5 billion recorded in 2023 and highlights the growing economic impact of the Kenyan diaspora.


According to the CBK's weekly bulletin, the United States remains the leading source of remittances, contributing 51% of the total inflows. December 2024, in particular, saw strong remittance activity, attributed to the festive season.




The surge in remittances has bolstered Kenya’s current account, supported exchange rate stability, and boosted foreign exchange reserves, which stood at $9.143 million (Sh1.184 trillion) as of January 16, 2025. This represents 4.7 months of import cover, exceeding the statutory four-month requirement.


Remarkably, diaspora remittances now surpass earnings from traditional Kenyan exports such as coffee, tea, and horticulture. Despite ongoing debates over Kenya’s diaspora policies, this achievement reflects a global trend seen across low- and middle-income countries (LMICs), where remittances hit $656 billion in 2023, according to the World Bank.


In Sub-Saharan Africa, remittances slightly declined by 0.3% to $54 billion in 2023. However, the World Bank projects a 2.3% growth rate in 2024, despite risks such as sluggish economic growth in high-income countries, oil price volatility, and currency fluctuations.


Kenya continues to rank among Africa’s top three recipients of diaspora remittances, alongside Nigeria and Ghana, reinforcing the critical role of its diaspora in shaping the nation’s economy.






0 comments

Comments


bottom of page