Money sent home by Kenyans living and working abroad grew by Sh68.8 billion, during the first nine months of this year, compared to a similar period last year.
This represents a 17.2 percent jump to hit $3.639 billion (Sh469.4 billion at current conversion rates) up from $3.106 billion (Sh400.7 billion) last year.
Fresh data from the Central Bank of Kenya (CBK) indicates that Kenyans in the diaspora sent home $418.5 million (Sh53.99 billion) in September, adding to the cumulative $3.22 billion (Sh415.4 billion) remitted during the eight-month period to August this year.
“Remittance inflows in September totalled $418.5 million…The remittance inflows continue to support the current account and the foreign exchange market. The US remains the largest source of remittances to Kenya, accounting for 55.4 percent in September 2024,” wrote CBK in its weekly bulletin release.
The highest monthly inflows recorded so far this year were in August, when they stood at $427.2 million, followed by September, a period that coincided with heightened back-to-school activity. This affirmed the expected momentum as Kenyans abroad wired cash to finance education bills for their kin back home who were reopening school.
CBK has projected a year-on-year growth of 12 percent in remittances this year, which would raise the total annual flow from $4.19 billion (Sh540.5 billion) in 2023 to $4.69 billion (Sh605.01 billion) by the close of this year.
This means that the Kenyan diaspora community would need to wire home a cumulative $1.1 billion (Sh141.9 billion), during the three months to December, which translates to a monthly average of $350.3 million (Sh45.2 billion).
The least remitted monthly value this year was in June, when it stood at $371.6 million (Sh47.9 billion) followed by February and April at $385.9 million (Sh49.8 billion) and $ $397.3 million (Sh51.3 billion) respectively.
If achieved, CBK’s target would mark the fastest annual percentage growth since 2021, when the volume of cash Kenyans abroad sent home rose 20 percent to $3.72 billion (Sh479.9 billion) as global economic activity recovered from the effects of the Covid-19 crisis.
Enhanced dollar inflows from Kenyans abroad have partly aided in easing pressure on the local shilling which, as of yesterday, exchanged at an average of 129.19 against the greenback. The improvement of the overall inflows’ performance follows the cooling off of the Russia-Ukraine skirmish, which had disrupted key global supply chains, sending world inflation to decades-high levels.
Aside from the US, other top sources of remittances to Kenya include Germany, Australia, the United Arab Emirates (UAE), Tanzania as well as Canada.
Since 2015, remittances from abroad have remained the largest source of foreign cash flows into the country, ahead of tourism, foreign direct investments (FDIs), as well as the export of agricultural products such as tea and coffee.
The sky-high energy, food, and rent prices due to the supply disruptions had pushed up living costs in the US and in Europe, eating into the disposable income that Kenyans in those economies tap to assist families and dependents back home.
