Diaspora remittances to Kenya soared to a staggering Sh651.7 billion in 2024, an impressive 18% increase from Sh543.3 billion in 2023, according to the Central Bank of Kenya (CBK). This steady inflow underscores the critical role remittances play in bolstering the nation’s financial stability and economic growth.
The year ended on a high note, with December recording Sh57.8 billion, a 5.2% rise compared to November’s Sh54.9 billion. The United States maintained its position as the largest source of remittances, contributing a significant 51% of total inflows in 2024.
“The United States remains the largest source of remittances, contributing 51% of total inflows,” the CBK confirmed in its report.
A Key Pillar of Kenya’s Economy
Diaspora remittances, alongside earnings from tourism and horticulture, are among Kenya’s top foreign income sources. They play a vital role in stabilizing the exchange rate and supporting the country’s current account balance.
Tourism, driven by a rise in visitor arrivals, contributed Sh352.54 billion in 2023, while tea exports added another Sh203.71 billion during the 2023/24 fiscal year, according to data from the Kenya National Bureau of Statistics (KNBS).
Transformative Impact on Households
Beyond supporting the national economy, remittances provide crucial financial assistance to Kenyan households. These funds are instrumental in improving access to education, healthcare, and entrepreneurial ventures, fostering widespread socio-economic development.
As Kenya continues to leverage these inflows, their growing impact highlights the importance of robust diaspora engagement and sustainable economic policies to maximize their potential.
