US-Based Kenyans Send Highest Share of Money Home Among Global Diaspora

Kenyans living abroad have exceeded the Central Bank of Kenya's (CBK) projected remittances for 2024, sending a remarkable $4.94 billion (Sh637.3 billion) back to their home country.

This figure surpasses the anticipated remittance total of Sh600 billion by 18 percent, illustrating the growing economic significance of the Kenyan diaspora. The CBK's weekly bulletin underscores 2024 as a historic year for remittances, which have already outperformed the Sh540.5 billion sent in 2023. The United States has emerged as the predominant source of these funds, contributing 51 percent of the total remittances.

Notably, December 2024 witnessed particularly strong inflows, coinciding with the festive season. The CBK highlights that the increase in remittances continues to bolster Kenya's current account and aids in maintaining exchange rate stability. This surge has significantly contributed to the nation's foreign exchange reserves, which stood at $9.143 million (Sh1.184 trillion) as of January 16, 2025, equating to 4.7 months of import cover and exceeding the statutory requirement of four months.

Remittances from the diaspora have now outstripped revenues from major Kenyan exports, such as coffee, tea, and horticulture. This trend persists despite ongoing critiques of the country's diaspora policies. It reflects a broader pattern observed in low- and middle-income countries (LMICs), where remittance flows reached an estimated $656 billion globally in 2023, according to the World Bank's Migration and Development Brief.

While remittance flows to Sub-Saharan Africa saw a slight decline of 0.3 percent to $54 billion in 2023, the World Bank projects a 2.3 percent growth rate for 2024, although this growth is expected to vary across regions. The global financial institution has identified potential risks to these projections, including sluggish economic growth in high-income countries hosting migrants, alongside fluctuations in oil prices and currency exchange rates.

In the context of Africa, Kenya ranks among the top three recipients of diaspora remittances, following Nigeria and Ghana, as established by World Bank rankings.