In 2023, remittances inflows from Kenyans living abroad reached a record high of USD 4.19 billion, marking a 4.0 percent increase from the previous year’s USD 4.028 billion, according to the latest data from the Central Bank of Kenya (CBK).
- Remittances are the leading contributor to foreign exchange inflows in Kenya, surpassing tourism, tea, and horticulture.
- December 2023 witnessed particularly robust inflows at USD 372.6 million, a 5.0 percent rise from November’s USD 355.0 million.
- The United States maintained its position as the primary source of remittances to Kenya, contributing 56 percent of the total in 2023.
Inflows play a crucial role in supporting the country’s current account, ensuring that foreign exchange reserves stand at USD 6,814 million as of January 18, equivalent to 3.6 months of import cover—meeting the Central Bank’s statutory requirement of maintaining at least 4 months of import cover.
In response to the surge in remittance figures, the Kenyan government expressed its intention to establish frameworks facilitating easier investment by Kenyans abroad in the country. Officials urged the diaspora community to consider contributing to new business opportunities and technology transfer from their host countries.
ALSO READ;
Diaspora Remittances Defy Rising Inflation, Total a Record High KES 499 Billion in 2022
Kenya Ranks as the Third Highest Recipient of Diaspora Remittances in Africa- World Bank
