Money sent by Kenyans living and working abroad has surged by 12.9 per cent over the past year, climbing to an impressive Ksh586 billion by June 2024.
This marks a significant rise from the Ksh519.1 billion recorded in June 2023, according to the latest data from the Central Bank of Kenya (CBK).
The remittances over the 12 months have jumped by Ksh66.936 billion.
“The cumulative inflows for the 12 months to June remained steady at USD 4,535 million (about Ksh586 billion) compared to USD 4,017 million (about Ksh519.1 billion) in a similar period in 2023, an increase of 12.9 per cent,” stated CBK in its weekly bulletin on Friday, July 19.
While remittances in June 2024 showed a slight decline compared to May 2024, they still exceeded the figures from the same month last year.
In June 2024, inflows totalled USD 371.6 million (about Ksh480.18 billion), up from USD 345.9 million (about Ksh446.972 billion) in June 2023, marking a 7.4 per cent increase.
These remittances play a crucial role in supporting Kenya's current account and the foreign exchange market. The United States remains the largest source of remittances, contributing 54 per cent of the total inflows in June 2024.
The CBK's data reveals that January 2024 saw the highest monthly remittance this year, with Kenyans abroad sending back $412.4 million (Ksh53.8 billion). This was followed by $407.8 million (Ksh53.2 billion) in March and $385.9 million (Ksh50.3 billion) in February.
Since 2015, remittances have outpaced other foreign cash flows into Kenya, surpassing tourism, foreign direct investments, and agricultural exports such as tea and coffee.
These funds are now recognised as a vital contributor to the nation’s economic growth and development.
The CBK conducts a monthly survey on remittance inflows through formal channels, including commercial banks and authorised international remittance service providers in Kenya.
Despite sticky inflation in major economies potentially reducing disposable incomes for the diaspora community, the remittance figures have remained robust.
Additionally, the CBK reported that the Kenyan shilling stabilised against major international and regional currencies during the week, strengthening to KSh129.99 per US dollar.
As of 18 July, the usable foreign exchange reserves stood at USD 7,409 million, providing 3.9 months of import cover, which meets the CBK’s statutory requirement to maintain at least 4 months of import cover.
