Diaspora remittances to Kenya hit a record $4.94 billion ( KES 640.75 billion) in the year ended December 2024, marking 18 percent growth that shattered the Central Bank of Kenya (CBK) estimates.
Data from the Central Bank of Kenya (CBK) reveals that remittance inflows grew from $4.18 billion (KES 542.89 billion) in the previous year, with December 2024 marking a record high of $445.4 million (Sh57.1 billion) in monthly remittances.
For comparison, remittances to Kenya in 2001 stood at just $51 million.
Kenya 🇰🇪
Remittances hit an all-time high of ~$5 billion in 2024, which is ~4.6% of the Kenya GDP.
Remittances have outpaced foreign direct investment in the region over the past decade. pic.twitter.com/im7wNVO9Vg
— BitKE (@BitcoinKE) January 20, 2025
The Central Bank of Kenya (CBK) reported that the United States contributed 51 percent of all remittances, highlighting its crucial role in Kenya’s foreign exchange earnings.
“The United States remains the largest source of remittances, contributing 51 percent of total inflows in 2024. The growth in remittances continues to support Kenya’s current account and stability of the exchange rate,” said CBK.
The Central Bank of Kenya (CBK) revised its annual remittance growth forecast upward four times throughout the year [2024], driven by sustained strong performance. Initially projected at 5 percent, the forecast was later adjusted to 12 percent mid-year, then to 16 percent, and ultimately to 17.5 percent.
🇰🇪MILESTONE | Diaspora Remittances to #Kenya Hit a Historic Record High of $427 Million in August 2024
The United States continues to be the leading source of remittances to Kenya, contributing 56% as of August 2024, followed by the United Kingdom.https://t.co/JAPiQcPp5K… pic.twitter.com/nReh9q0yyd
— BitKE (@BitcoinKE) October 2, 2024
The 18 percent surge in remittances marks one of the fastest annual growth rates, compared to the previous five years leading up to 2022, during which remittances from Kenyans abroad averaged KES 460.83 billion and grew by just 4 percent in 2023, according to CBK data.
Over the past decade, remittances have outpaced foreign direct investment in the region.
Kenya currently leads in diaspora remittances within the eastern African region, with the inflows serving as the country’s largest source of foreign currency, surpassing earnings from major crops and tourism.
The figures significantly surpass Somalia’s $1.73 billion and Uganda’s $1.49 billion, as reported in newly released World Bank statistics.
The Democratic Republic of Congo and South Sudan experienced year-on-year declines in remittance inflows, dropping to $1.35 billion and $1.14 billion, respectively. Meanwhile, the remaining three East African Community (EAC) states—Tanzania, Rwanda, and Burundi—remain below the $1 billion mark.
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