Diaspora remittances by Kenyans hit $427.2 million in August 2024, the highest monthly value sent by Kenyans abroad in history according to a weekly bulletin produced by the Central Bank of Kenya (CBK).
The $427.2 million dwarfs the $354.3 million recorded in August 2023, and is 3.1% higher than the $414.3 million sent by Kenyans in July 2024.
The increase was primarily driven by higher remittances from the United States and Australia, despite declines from Europe, Asia, and Africa.
The United States continues to be the leading source of remittances to Kenya, contributing 56% as of August 2024, followed by the United Kingdom.
However, since March 2024, Saudi Arabia has overtaken the UK as the second-largest source and has maintained that spot.
🇸🇦 🇰🇪REMITTANCES | Saudi Arabia Surpasses the UK as a Second Largest Source of Diaspora Remittances to Kenya in H1 2024
According to CBK’s weekly bulletin, the U.S. remains the largest source of these remittances, contributing 52% of the total in July 2024.… pic.twitter.com/w4rQc4O03e
— BitKE (@BitcoinKE) September 5, 2024
Among African countries:
- Tanzania leads as the top source of remittances to Kenya, contributing US$5.4 million, followed by
- Uganda with $4 million and
- South Africa with $2.7 million
The consistent growth in remittances in 2024 is a boost to the Kenya Shilling (KES) and continues to hold the currency stable.
“The remittance inflows continue to support the current account and the foreign exchange market,” CBK noted in the weekly bulletin.
Since 2015, remittances from the diaspora have been the largest source of foreign inflows into Kenya, surpassing tourism, foreign direct investments, and major agricultural exports like horticulture and tea.
Meanwhile, the Kenya Shilling remained stable against major international and regional currencies during the week ending September 19 2024. It exchanged at KES 129.20 per U.S. Dollar on September 19 2024, compared to KES 129.18 per U.S. Dollar, a week earlier, the bulletin said.
The country’s foreign exchange reserves remained stood at $7.86 billion as of September 19 2024 which is equivalent to 4.1 months of import cover.
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