Kenyan diaspora remittances reached a new high in July 2024, increasing by 11.5% compared to the previous month.
The surge was driven by easing inflation in the United States, leading to increased disposable income for Kenyans living and working abroad.
The US remains the primary source of remittances, accounting for 52% of the total. Other top sources include Canada, the United Kingdom, Germany, Saudi Arabia, the United Arab Emirates, and Australia.
| Year | Month | North America | Europe | Rest of World | Total Remittances (USD ‘000) |
|---|---|---|---|---|---|
| 2024 | Jan | 227,764.71 | 85,970.23 | 98,675.10 | 412,410.04 |
| 2024 | Feb | 216,261.02 | 68,506.15 | 101,166.51 | 385,933.68 |
| 2024 | March | 229,327.94 | 70,459.26 | 107,984.99 | 407,772.19 |
| 2024 | April | 214,547.83 | 74,874.09 | 107,874.65 | 397,296.56 |
| 2024 | May | 226,417.81 | 68,225.28 | 109,804.30 | 404,447.39 |
| 2024 | June | 206,630.55 | 62,654.47 | 102,307.78 | 371,592.80 |
| 2024 | July | 227,532.70 | 73,721.62 | 113,003.32 | 414,257.64 |
Cumulative inflows for the 12 months to July 2024 reached $4.4 billion (Sh568 billion), up 12.2% from the previous year.
“The remittance inflows continue to support the current account and the foreign exchange market,” CBK said.
According to NCBA Monthly Economic Report – August 2024, despite fluctuating sentiment influenced by sovereign credit rating downgrades and shifting supply and demand dynamics, the Kenyan shilling has exhibited remarkable stability in the foreign exchange market.
Supported by robust diaspora remittances, export receipts, and central bank intervention, we anticipate limited volatility in the FX market. The likelihood of a more aggressive interest rate cut by the US Federal Reserve in September could further strengthen the Kenyan shilling.
Year-to-date, the shilling has appreciated by 17.7% against the US dollar.
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