US Leads as Kenyans Abroad Send Billions Home, Remittances Surge by 12.9% to Ksh586 Billion
Money sent by Kenyans residing and working abroad has increased by 12.9 percent over the past year, reaching a notable Ksh586 billion by June 2024.
This is a substantial rise from the Ksh519.1 billion reported in June 2023, as per the latest figures from the Central Bank of Kenya (CBK). Remittances over the past year have grown by Ksh66.936 billion.
According to the CBK’s weekly bulletin released on Friday, July 19, “The total inflows for the 12 months up to June stayed constant at USD 4,535 million (around Ksh586 billion), compared to USD 4,017 million (about Ksh519.1 billion) in the same period of 2023, reflecting a 12.9 percent increase.”
Although there was a slight decrease in remittances in June 2024 compared to May 2024, the figures still surpassed those of June 2023.
In June 2024, remittances amounted to USD 371.6 million (approximately Ksh480.18 billion), an increase from USD 345.9 million (about Ksh446.972 billion) in June 2023, marking a 7.4 percent rise.
These remittances are essential for Kenya’s current account and foreign exchange market. The United States remains the primary source, accounting for 54 percent of the total inflows in June 2024.
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The CBK’s data shows that January 2024 recorded the highest monthly remittance this year, with Kenyans abroad sending $412.4 million (Ksh53.8 billion). 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 surpassed other foreign cash inflows into Kenya, including tourism, foreign direct investment, and agricultural exports such as tea and coffee.
These funds are now seen as a crucial driver of the nation’s economic growth and development.
The CBK carries out a monthly survey of remittance inflows through formal channels, including commercial banks and licensed international remittance service providers in Kenya.
Despite persistent inflation in major economies potentially affecting the disposable incomes of the diaspora community, remittance figures have remained strong.
Moreover, the CBK reported that the Kenyan shilling stabilized against major international and regional currencies during the week, strengthening to KSh129.99 per US dollar.
As of July 18, the usable foreign exchange reserves amounted to USD 7,409 million, providing 3.9 months of import cover, which meets the CBK’s statutory requirement of at least 4 months of import cover.
US Leads as Kenyans Abroad Send Billions Home, Remittances Surge by 12.9% to Ksh586 Billion
