In a recent report by the Central Bank of Kenya (CBK), it has been revealed that diaspora remittances to Kenya experienced a decline in February, dropping to $385.9 million from the $412.4 million recorded in January of the same year. Despite this decrease, the January 2024 figure marked the highest remittance amount since August 2020.
The United States continued to be the primary source of diaspora remittances, contributing 54% of the total remittances in February. CBK data underscores a consistent growth trend in remittance inflows since September of the previous year, with the Americas region, including the USA, Canada, Bahamas, and others, leading the way.
Meanwhile, within the European region, countries such as the United Kingdom, Germany, Switzerland, and Italy emerged as significant contributors to remittances, with January 2024 recording the highest remittance amount since January 2023.
In the African region, Tanzania, Uganda, and South Africa topped the charts in terms of remittance amounts, with January figures indicating notable contributions from Kenyan expatriates residing in Nigeria, Ivory Coast, Zambia, South Sudan, Egypt, and Malawi. Additionally, key source markets for diaspora remittances beyond Africa include Saudi Arabia, Qatar, United Arab Emirates, Bahrain, India, Oman, Japan, Iraq, China, Australia, and New Zealand.
Despite fluctuations in remittance amounts, the Kenyan shilling remained stable against major international and regional currencies, exchanging at Ksh 137.49 per US dollar as of March 14, compared to Ksh 142.07 per US dollar on March 7. The CBK also emphasized that the country’s usable foreign exchange reserves remained adequate, meeting the statutory requirement of maintaining at least four months of import cover.
While the slight decrease in remittance inflows in February may raise concerns, the overall trend indicates resilience and stability in Kenya’s diaspora remittance sector amidst evolving global economic Dynamics.
