In the dynamic landscape of diaspora remittances to Kenya, Saudi Arabia is making significant strides, challenging the United Kingdom’s position as a leading contributor. However, both countries’ contributions remain dwarfed by the massive inflows from the United States.
In July 2024, remittances from:
- The U.S. reached an impressive $216.6 million, far outpacing
- The UK’s $30.2 million and
- Saudi Arabia’s $37.4 million
This trend underscores the dominant role of the U.S. in supporting Kenya’s economy through remittances.
Data from the Central Bank of Kenya (CBK) reveals that from January to July 2024, the UK outperformed Saudi Arabia only in the first two months. By July, there were 310,266 Kenyans employed in Saudi Arabia, marking it as the top destination for Kenyan workers in the Gulf region.
🇰🇪M-PESA is the Preferred Remittance Channel for Kenyans Living Abroad, Says Latest Central Bank of Kenya Survey 🇰🇪https://t.co/Hv3HlhlaVz @CBKKenya @SafaricomPLC
— BitKE (@BitcoinKE) January 24, 2022
The migration of Kenyans to the Gulf states over the past five years has markedly altered migration patterns and the associated remittances.
For instance, in 2019, remittances from the UK were $20.6 million compared to Saudi Arabia’s $3.3 million. This shift highlights the growing appeal of Gulf countries, driven by their expanding labor markets and more challenging migration conditions in European countries.
In July 2024, overall remittance inflows to Kenya totaled $414.3 million, up 9.6% from $378.1 million in July 2023. For the 12-month period ending in July 2024, cumulative inflows increased by 12.2% to $4,572 million, compared to $4,076 million in the previous year. According to CBK’s weekly bulletin, the U.S. remains the largest source of these remittances, contributing 52% of the total in July 2024.
In a bid to strengthen bilateral ties, Kenya and Saudi Arabia established the Joint Commission for Cooperation (JCC) in Riyadh in 2022, focusing on labor, consular affairs, ICT, transport, and development. However, challenges persist, including allegations of indentured servitude and a concerning number of Kenyan deaths in the Gulf. In July 2024, Prime CS and CS for Foreign Affairs, Musalia Mudavadi, reported 316 recorded deaths of Kenyans in the Gulf, with over half occurring in Saudi Arabia.
As the remittance landscape continues to evolve, the interplay between these key contributors highlights the shifting dynamics of international labor migration and economic support for Kenya.
Follow us on X for latest posts and updates
Join and interact with our Telegram community
_________________________________________
_________________________________________
