Kenyans abroad have sent home a staggering $1.2 billion (Sh158 billion) in the first quarter of 2024, marking an impressive 18.8 percent increase from the same period last year. This surge in remittances comes as a welcome relief, fueled by easing inflationary pressure in developed economies.
According to data from the Central Bank of Kenya (CBK), remittances peaked at $412.4 million (Sh53.8 billion) in January, followed closely by $407.8 million (Sh53.2 billion) in March and $385.9 million (Sh50.3 billion) in February. These figures highlight the significant contribution of Kenyans living abroad to the country’s economic growth and stability.
The United States remains the largest source of remittances to Kenya, accounting for a whopping 56 percent of the total remitted value. This surge in dollar inflows has not only supported the supply side of the dollar but has also helped ease pressure on the Kenyan shilling, resulting in marginal reductions in essential utility prices such as power and fuel.
The impressive performance of remittances follows the cooling off of the Russia-Ukraine conflict, which had previously disrupted global supply chains and sent inflation soaring. With remittances being the largest source of foreign cash flows into Kenya, this upward trend bodes well for the country’s economy and underscores the importance of Kenyan diaspora contributions.
