(Nairobi) – Diaspora remittances to Kenya grew by KSh 2 billion in October 2024, reaching a total of $437.2 million (Sh56.7 billion), marking a 22.9% increase compared to the same period in 2023.
The Central Bank of Kenya (CBK) has reported a rise in remittance inflows from Kenyans living abroad, with the total amount sent home in October increasing by $18.7 million (Sh2.4 billion) compared to the previous month. This rise in remittances helped Kenya achieve a 15.3% growth in cumulative remittance inflows over the 12 months to October 2024, amounting to $4.8 billion (Sh623 billion).
In comparison, during the same period last year, Kenya received $4.1 billion (Sh532 billion) in diaspora remittances. According to the CBK, the increase in remittance inflows continues to support the country’s current account and foreign exchange market, making a positive contribution to the national economy.
The United States remains the largest source of remittances to Kenya, contributing 53.7% of the total inflows in October 2024. This continues a trend that has been consistent over the years, with the US being the primary channel for Kenyan diaspora remittances.
In addition to the increase in remittances, the Central Bank highlighted that Kenya’s foreign reserves had risen to their highest level in three years, largely due to recent inflows from the International Monetary Fund (IMF). As of November 14, 2024, the country’s foreign exchange reserves stood at $9.27 billion (Sh1.2 trillion), sufficient to cover 4.8 months of imports. This improvement helped narrow the current account deficit, a key indicator of the country’s economic health.
However, despite the positive news surrounding remittances and foreign reserves, Kenya’s currency experienced a slight depreciation against the US dollar. The Kenyan shilling traded at Sh129.35 per US dollar on November 15, compared to Sh129.20 on November 7. This small dip is attributed to the global strengthening of the US dollar following the US presidential election, which increased demand for foreign currency in Kenya.
The Central Bank’s report underscores the critical role of diaspora remittances in supporting Kenya’s economy. These funds are vital for the country’s foreign exchange reserves, current account, and overall financial stability.
| Month | Remittance Inflows | Growth from Previous Year | Foreign Reserves |
|---|---|---|---|
| October 2024 | $437.2 million (Sh56.7 billion) | +22.9% (compared to October 2023) | $9.27 billion (Sh1.2 trillion) |
| October 2023 | $355.6 million (Sh46 billion) | – | – |
| 12-Month Total (Oct 2024) | $4.8 billion (Sh623 billion) | +15.3% | – |
The CBK’s bulletin also noted that October 2024 recorded the highest dollar inflows from remittances in the year, reflecting the importance of the month in supporting Kenya’s economic recovery and stability.