Kenyans living and working abroad increased the money they sent back home by $72.9 million (Sh9.4 billion) in August 2024 compared to the same period last year, bringing total remittances to $427.2 million (Sh55.09 billion). This represents a 20.6 percent increase from August 2023, marking the highest amount ever received from citizens abroad.
Cumulative inflows over the 12 months leading up to August 2024 reached $4.645 billion (Sh593 billion), up from $4.120 billion (Sh529 billion) in the previous year, reflecting a 12.7 percent rise. This surge in remittances is attributed to the easing of global economic conditions following cuts in interest rates.
In August 2024, remittance inflows totaled $427.2 million, compared to $354.3 million in August 2023. The Central Bank of Kenya (CBK) noted that these inflows continue to bolster the current account and support the foreign exchange market.
The United States remains the largest source of remittances, accounting for 56 percent of the total in August 2024. Other significant sources include the United Kingdom, Canada, and the Middle East, which collectively contribute a substantial share to the country’s foreign exchange earnings.
Over the past four years, remittances have played a crucial role in Kenya’s economy, supporting household consumption and facilitating investments in sectors such as real estate, education, and healthcare. Market analysts suggest that the steady rise in remittance inflows reflects ongoing confidence in Kenya’s economic stability among the diaspora community.
In light of this growth, the government aims to increase diaspora remittances to Sh1 trillion by 2027, up from Sh671 billion sent last year. These inflows also significantly support the country’s foreign exchange reserves, which stood at $7.856 billion (Sh1.01 trillion) as of September 20, 2024, equivalent to 4.1 months of import cover, meeting the CBK’s statutory requirement.
According to a WorldRemit analysis, education, healthcare, and household needs are the primary uses of remittances in Kenya. The country is recognized as one of the top recipients of remittances on the continent, with increasing investments in real estate and the capital market from Kenyans abroad, particularly from the US, Canada, and the UK.
