Kenya’s diaspora remittances have recorded a significant increase, rising by 16.7% to $4.872 billion (approximately Kes 630 billion) in the 12 months leading to November 2024. This marks a sharp rise from the $4.175 billion recorded in the same period in 2023, highlighting the growing role of remittances in Kenya’s economy.
Speaking at a press conference on Thursday, National Treasury and Economic Planning Cabinet Secretary John Mbadi emphasized the rapid growth in remittances, noting their critical contribution to household incomes, investments, and foreign exchange reserves.
“Diaspora remittances increased by 16.7% to $4.872 billion which is about Kes 630 billion in the last 12 months to November 2024 from $4.175 billion in 2023. We have seen remittance increasing exponentially,” Mbadi stated.
Experts may attribute the increase in remittances to several factors, including improved global employment opportunities for Kenyans abroad, better financial technology for money transfers, and a stable macroeconomic environment that encourages diaspora investment. The United States continues to be the largest source of remittances, followed by the United Kingdom, Saudi Arabia, and other European and Middle Eastern nations.
Additionally, the Kenyan government has been actively engaging the diaspora community through policies and incentives aimed at boosting their contributions to national development. These include diaspora bonds, investment forums, and digital banking solutions that make remitting funds more efficient and cost-effective.
Diaspora remittances remain Kenya’s top source of foreign exchange earnings, surpassing traditional sectors such as tourism and agricultural exports. This steady inflow of funds plays a crucial role in stabilizing the country’s currency and cushioning against external economic shocks.
As the government looks ahead, analysts predict that remittances will continue to rise, particularly as more Kenyans seek opportunities abroad and the country strengthens its ties with its global diaspora.
