Kenyans living and working abroad sent home a total of $1.2 billion in the first three months of the year.
This marks an 18.8% increase from the total amount remitted in the first quarter of 2023.
According to the East African, Data from the Central Bank of Kenya (CBK) showed that Kenyans living abroad remitted in descending order $412.4 million (Ksh53.8 billion) back home in January followed by $407.8 million (Ksh53.2 billion) in March and $385.9 million (KshSh50.3 billion) for February.
The total amount remitted by Kenyans living and working abroad in the first quarter of 2024 represents a $190.5 million (Ksh25 billion) increase from the $1.02 billion (Ksh133.6 billion) remitted by the same class of Kenyans in the first quarter of 2023.
Last Month March, the United States kept its position as the largest source of remittances to Kenya hitting an all-time high of $228.4 million accounting for 56% of the total remittances for the month of march. The US remittances also accounted for 54% of total remittances for the month of January and February.
Increased inflow of dollars by Diaspora remittances in Kenya has helped eased the pressure on the Kenyan shilling this year by supporting the supply side of the dollar against the demand side by importers shipping in goods.
The high remittances figures follow the cooling off of the Russian — Ukraine war which disrupted Global supply chains and increased Global inflation.
High energy, food and rent prices caused by Global supply disruptions due to Russia invading Ukraine in February 2022 has pushed up cost of living in the US and Europe eating into the pockets of Kenyan’s and affecting the amount Kenyans in diaspora can remit back home.
The cooling off of the war is one of the key reasons for the high remittance in the first quarter of the year.
What to know
- According to Statista, The United States and the United Kingdom hosts the largest number of Kenyans living abroad. The United States hosts about 157,000 immigrants while the United Kingdom follows with over 139,000 Kenyans living in the country.
- Since 2015, Remittances by the Kenyan Diaspora has remained one of the largest sources of foreign exchange into Kenya ahead of Tourism, Foreign Direct Investments and Agricultural exports like coffee and tea.
