Money sent home by Kenyans living and working in the diaspora hit a record high in a single month, clocking US$427.2 million (KSh55.2 billion), in August.
- •Inflows in August were 3.1 percent higher than the US$414.3 million (KSh53.5 billion) remitted in July 2024 and 20.6% higher than US$354.3 million recorded in August 2023.
- •The increase was mainly driven by increases in remittances from America and Australia albeit watered down by decreases in Europe, Asia and Africa.
- •Since 2015, diaspora remittances have been the largest source of foreign inflows into the country, ahead of tourism, foreign direct investments, and key agricultural exports such as horticulture and tea.
In the 12 months to August 2024, cumulative remittance inflows increased by 12.7 percent to US$4.6 billion from US$4.1 billion in a similar period in 2023.
The US remains the largest source of remittances to Kenya, accounting for 56% in August 2024. Saudi Arabia surpassed the UK as the second largest source of remittances in March and has secured the position ever since. Read More.
The shift is indicative of the evolving migration laws that have made it harder for Kenyans to move to European countries, while Gulf countries have become a favorable destination due to their burgeoning labor needs.
In Africa, Tanzania tops the list of remittances sourceS to Kenya, amounting to US$5.4 million, followed by Uganda (US$4.0 million) and South Africa (US$2.7 million).
The consistent growth in remittances in 2024 is a boost to the shilling and continues to hold the currency stable. “The remittance inflows continue to support the current account and the foreign exchange market,” CBK noted in the weekly bulletin.