Remittances from Kenyans living abroad dipped in January 2024, decreasing by KSh2.3 billion compared to December 2024, according to Central Bank of Kenya (CBK) data.
This decline follows a record-high remittance inflow in December, the largest ever recorded in Kenya.
In January, diaspora remittances totalled $427.4 million (approximately KSh55.2 billion), down from $445.4 million (KSh57.6 billion) in December.
Despite this month-on-month decrease, January’s remittances were still 3.6% higher than the $412.4 million (KSh53.3 billion) received in January 2023, demonstrating continued year-on-year growth.
Over the 12 months leading to January 2025, cumulative remittances reached $4.96 billion (KSh641.1 billion), a 16.6% increase from the $4.25 billion (KSh549.6 billion) recorded during the same period in 2023-2024.
“The cumulative inflows for the 12 months to January 2025 increased by 16.6 percent to $4,961 million (Sh641.1 billion), compared to $4,253 million (Sh549.6 billion) in a similar period in 2024,” CBK says in its weekly bulletin.
While the CBK did not specify reasons for the January decline, it may be attributable to seasonal spending patterns, with increased remittances typically sent home during the December holiday season.
The relatively stable exchange rate of the Kenyan shilling against the US dollar (averaging around 129) might also influence remittance flows. A stronger shilling means that each dollar sent home translates to fewer Kenyan shillings.
The US remained the primary source of remittances, accounting for 53.2% of the total.
Remittances are Kenya’s largest source of foreign exchange, exceeding earnings from tourism and agriculture, and play a crucial role in supporting household incomes, stabilizing the exchange rate, and driving economic growth.