Kenya’s Diaspora Remittances Hit All-Time High of $4.2 Billion

Kenyan diaspora remittances surged to a record $4.2 billion in 2023, up 18% from 2022, driven by strong inflows from the US, UK, and UAE. The Central Bank attributed the growth to digital money transfer innovations, stable exchange rates, and targeted diaspora engagement programs. These funds now surpass tourism and tea export earnings, providing a critical lifeline for 3 million households. Over 60% of remittances go toward education, healthcare, and housing. The government’s Diaspora Directorate is piloting investment bonds and land ownership simplification to channel more funds into productive assets. However, high transfer fees (averaging 7%) remain a concern. Partnerships with fintechs like WorldRemit and Sendwave aim to lower costs to under 3% by 2025.