Kenya’s Diaspora Remittances Increased Impressively, US Leads
Money sent by Kenyans living and working abroad has increased by 12.9% in the past year, reaching an impressive Ksh586 billion by June 2024.
According to the most recent data from the Central Bank of Kenya (CBK), this represents a significant increase from Ksh519.1 billion in June 2023.
Remittances have increased by Ksh66.936 billion in the last 12 months.
“The cumulative inflows for the 12 months to June remained steady at USD 4,535 million (about Ksh586 billion) compared to USD 4,017 million (about Ksh519.1 billion) in a similar period in 2023, an increase of 12.9 percent,” stated CBK in its weekly bulletin on Friday, July 19.
The Central Bank of Kenya (CBK) publishes a Weekly Bulletin, outlining recent monetary and financial developments. The Weekly CBK Bulletin for July 19, 2024 can be found at https://t.co/pyxQI1tur0 pic.twitter.com/bH0o7864v2
— Central Bank of Kenya (@CBKKenya) July 19, 2024
While remittances in June 2024 fell slightly from May 2024, they still exceeded those in the same month last year.
In June 2024, inflows totaled USD 371.6 million (about Ksh480.18 billion), up from USD 345.9 million (about Ksh446.972 billion) in June 2023, representing a 7.4% increase.
These remittances play an important role in Kenya’s current account and foreign exchange market.
The United States remains the largest source of remittances, accounting for 54% of total inflows in June 2024.
According to CBK data, Kenyans abroad sent $412.4 million (Ksh53.8 billion) home in January 2024, the highest monthly remittance this year.
This was followed by $407.8 million (Ksh53.2 billion) in March and $385.9 million (Ksh50. 3 billion) in February.
Since 2015, remittances have outpaced other foreign cash flows into Kenya, outperforming tourism, foreign direct investment, and agricultural exports like tea and coffee.
These funds are now acknowledged as an important contributor to the country’s economic growth and development.
The CBK conducts a monthly survey of remittance inflows through formal channels in Kenya, which include commercial banks and authorized international remittance service providers.
Despite sticky inflation in major economies, which could reduce disposable incomes for the diaspora community, remittances have remained strong.
Furthermore, the CBK reported that the Kenyan shilling remained stable against major international and regional currencies this week, rising to KSh129.99 per US dollar.
As of July 18, usable foreign exchange reserves totaled USD 7,409 million, providing 3.9 months of import cover, meeting the CBK’s statutory requirement of at least 4 months.
Kenya’s Diaspora Remittances Increased Impressively, US Leads
