President William Ruto's agenda to boost revenue from foreign remittance seems to be gaining momentum, judging by the latest World Bank report.
In the report titled Leveraging Diaspora Finances for Private Capital Mobilisation, Kenya was ranked as the third country to receive the highest diaspora remittance in Africa in the year 2023.
According to the report, Kenya received over Ksh660 billion, emerging as the first East African country on the list.
Overall, Nigeria led with Ksh3.2 trillion (20.5 billion US dollars), followed by Ghana with Ksh771 billion.
Kenya emerged third, followed by Zimbabwe, which received Ksh486 billion in 2023. Uganda, on the other hand, was the second East African country on the list at position seven after receiving Ksh204 billion in the past year.
According to the report, remittances to the Sub-Saharan Africa are estimated to grow by 1.9 per cent in 2024.
"The slowed growth in remittances observed in 2023 is explained by the slow pace of growth in the high-income economies where many Sub-Saharan African migrants earn their income. Remittances from the United States have remained stable," read part of the report.
"Although the euro area has recovered, its output remains 2.2 per cent below pre-pandemic projections."
President Ruto has in the past indicated that the government seeks to increase revenue as an alternative to overdependence on debts.
One of the measures involves increasing diaspora remittances as part of the government's agenda to channel the funds towards domestic development in the country.
In April 2023, Ruto tasked the Foreign Affairs Ministry to streamline revenue flows from Kenyans in the diaspora to collect a minimum of Ksh1 trillion.
Part of the strategy from the government involves establishing a website for the diaspora where they can access crucial services, investments, jobs among other business information from the government.
In 2022, Kenyans in the diaspora defied the tough economic times and sent a record Ksh497.2 billion, mostly channelled to friends and family. This, according to data from the Central Bank of Kenya (CBK), showed an 8.3 per cent increase compared to Ksh458.9 billion in 2021.
