Kenya has received Ksh1 trillion from its citizens in the diaspora, achieving a historic milestone in the country’s fiscal space.
Prime Cabinet Secretary and Foreign Affairs Musalia Mudavadi made the announcement, noting the figure was as of November this year, meaning that the figure could rise.
Speaking during the Third Quarterly Media Briefing on Foreign Policy held at the Ministry of Foreign and Diaspora Affairs headquarters, Mudavadi described the achievement as a significant contribution to Kenya’s economy and a reflection of the government’s commitment to diaspora welfare and engagement.
“Diaspora remittances remain a vital pillar of our economy, providing financial support to households while directly contributing to national development,” he said.
“These resources are essential in complementing our economic strategies and advancing Kenya’s growth agenda,” Mudavadi added.
According to the Ministry, the achievement was in part driven by a rise in the number of Kenyans working abroad, with 430,000 Kenyans gaining employment overseas through Bilateral Labour Agreements (BLAs) since 2023.
Also, access to thousands of digital jobs facilitated through initiatives such as the Ajira Digital Programme was another reason for the achievement.
Figures from the Central Bank of Kenya revealed that diaspora remittances were Ksh543.3 billion in 2023, before increasing to Ksh651.7 billion in 2024, and then reaching the record-breaking Ksh1 trillion this year.
High diaspora remittances greatly aid in boosting foreign exchange reserves and the shilling, something which Mudavadi alluded to. Also, high inflows from abroad help in economic growth and stability, support investment and entrepreneurship, improve access to credit, and cushion against economic shocks.
In the case of Kenya’s diaspora remittances, the United States is the greatest source, accounting for 50 to 55 per cent of the total remittances. Monthly remittances are now regularly above $400 million (Ksh 51.7 billion).
The remittances have surpassed earnings from some of Kenya’s traditional exports, such as tea and horticulture, as a foreign-exchange source.
Meanwhile, Mudavadi maintained that the government would continue to provide an enabling environment that safeguards Kenyan workers abroad and maximises the benefits of their contributions.
