Diaspora remittances hit an all-time high in 2024, clocking US$4.95 billion (KSh 640.8 billion), an 18% jump from US$4.19 billion (KSh 542.4 billion) in 2023.
- Diaspora inflows in December 2024 alone reached an all time monthly high of US$445.4 million, 5.2% higher than the US$423.2 million in November.
- According to data from the Central Bank of Kenya (CBK), the US was the largest source of remittances to Kenya throughout 2024, accounting for 51% of total inflows in the year.
- The 2024 numbers slightly surpass the US$4.92 billion or 17.5% growth projection by the CBK at the final monetary policy committee meeting in 2024
“The United States remains the largest source of remittances, contributing 51 percent of total inflows in 2024,” CBK noted in the weekly bulletin.
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.
Saudi Arabia has surpassed the UK to become the second largest source of remittances, with the shift 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 remittance sources to Kenya, amounting to US$6.9 million, followed by Uganda (US$5.7 million) and South Africa (US$2.2 million).
The consistent growth in remittances in 2024 boosted to the shilling and continues to hold the currency stable. “The growth in remittances continues to support Kenya’s current account and stability of the exchange rate,” CBK added.
The Ministry of Foreign Affairs estimates that more than 3 million Kenyans reside in the Diaspora with the majority in the United States and the United Kingdom. According to World bank data, Kenya leads in diaspora remittances in the East African region, surpassing Somalia’s US$1.7 billion and Uganda’s US$1.5 billion, DRC’s US$1.4 billion and South Sudan’s US$1.1 billion with Tanzania, Burundi and Rwanda recording remittances below US$1 billion.
