Kenyans living and working abroad increased the money they sent back home by $72.9 million (Sh9.4billion), in August 2024 compared to the same period last year, hitting a total of $427.2 million (Sh55.09 billion).
Last month’s remittances are a 20.6 per cent increase, compared to August 2023, the highest amount the country has ever received from its citizens working abroad.
The cumulative inflows in the 12 months to August 2024 totaled $4.645 billion (Sh593 billion) compared to $4.120 billion (Sh529 billion) in a similar period in 2023, an increase of 12.7 percent.
This is the highest ever recorded inflows in the past four year boosted by the cut in fed rate that has seen economies open up.
Remittance inflows in August 2024 totaled $427.2 million compared to $354.3 million in August 2023,
“The remittance inflows continue to support the current account and the foreign exchange market,” CBK said in its weekly dispatch.
The United States continues to be the largest source of remittances to Kenya, contributing 56 percent of the total inflows in August 2024.
Other significant remittance sources include the United Kingdom, Canada, and the Middle East, which collectively account for a substantial share of the country's foreign exchange earnings.
Over the past four years, remittances have continued to play a vital role in Kenya's economy, as they not only support household consumption but also contribute to investments in key sectors such as real estate, education, and healthcare.
According to market analysts, the steady increase in remittance inflows highlights the continued trust in Kenya's economy by its diaspora community.
To tap on this, the government has announced plans to increase diaspora remittance to Sh1 trillion by 2027, up from Sh671 billion sent last year.
The inflows are also a key support for the country’s foreign exchange reserves which remained adequate at $7.856 billion (Sh1.01 trillion), equivalent to 4.1 months of import cover as of September 20, 2024.
“This meets the CBK’s statutory requirement to endeavor to maintain at least four months of import cover,” CBK noted.
Education, healthcare, and household needs are the main uses of remittances in Kenya, according to an analysis by WorldRemit, with the country being among the top receivers in the continent.
Kenyans have also in recent years increased investments in real estate and the capital market, with the US, Canada and the UK topping the list.
