Kenyans living abroad continue to play a crucial role in supporting the country’s economy, with diaspora remittances emerging as a significant source of foreign exchange. According to the Central Bank of Kenya (CBK), remittances contributed between 3 and 4 percent of Kenya’s GDP in 2024, highlighting their importance not only for the national economy but also for sustaining household livelihoods. In the first nine months of 2024 alone, Kenyans abroad sent home approximately Sh469.4 billion, representing a 17.2 percent increase compared to the same period in 2023, with September recording Sh53.99 billion. The United States remains the dominant source, accounting for over half of these inflows.
The steady growth of remittances has outpaced several traditional export earnings, including coffee, tea, and horticulture. In 2022, remittances totaled about $4.03 billion, approaching the $5.77 billion earned from key exports. CBK projections indicate that total inflows for 2024 were expected to reach $4.69 billion (Sh605 billion), marking the fastest annual growth since 2021. The surge reflects the larger population of Kenyans in the US, estimated at around 3 million, who have greater access to higher-paying jobs and formal financial channels, making remitting money home easier and more frequent. These funds are critical for families, helping cover essential expenses such as education, healthcare, housing, and daily living costs.
Economic analysts and policymakers have welcomed the trend, noting its stabilizing impact on Kenya’s foreign reserves and household welfare. The government is exploring strategies to leverage diaspora contributions further, including formal investment channels and incentives for remittance-backed projects. CBK and financial institutions are also promoting digital transfer systems to ensure efficient and secure remittances. Looking ahead, if current trends persist, Kenya’s diaspora inflows in 2025 could surpass $5 billion, reinforcing their role as a cornerstone of economic stability and social support across the country.