Kenyans living abroad sent home USD 349.4 million (Sh43.7 billion) in January, a 3.2 per cent increase compared toUSD338.7 million (Sh42.4 billion) sent in the same month in 2022.
According to the Central Bank of Kenya (CBK), United States remains the leading source of remittances to Kenya.
However, the Middle East is slowly emerging among the top sources of inflows.
Overall, the US, UK and Saudi Arabia account for nearly three-quarters of total annual inflows into Kenya.
CBK says the cumulative inflows for the 12 months to January 2023 totalled USD 4,039 million (Sh505.9 billion), compared to USD 3,778 million (Sh473.2 billion) in January 2022, an increase of 6.9 per cent.
“The remittance inflows continue to support the current account and the foreign exchange market,” said CBK in its weekly bulletin.
The US remained the largest source of remittances into Kenya, accounting for 58.5 per cent of the inflows during the first month of the year.
CBK only measures the money remitted through formal channels, including commercial banks and other authorised international remittance service providers in Kenya.
Remittances to Kenya currently top in foreign exchange, ahead of tourism, tea, coffee, and horticulture exports.
Compared with 2021, Kenya’s total exports rose 7.5 percent in 2022, a slower growth rate than the diaspora remittances, which are projected to keep growing as the world’s economy continues to recover.
Tea, Kenya’s leading export, earned $1.2 billion in 2022(Sh150 billion), followed closely by horticulture at $901 million (Sh112.9 billion), chemicals $521 million (Sh65.3 billion), coffee $301 million (Sh37.7 billion) and petroleum products $77 million (Sh9.6 billion), highlighting the crucial role of remittances in bringing in foreign currencies.
Education, healthcare, and household needs absorb the chunk of remittances to Kenya.
