Diaspora remittances saw a 14 per cent increase from Sh591.2 billion in 2023 to Sh674.1 billion in 2024, maintaining its position as the largest source of foreign inflows into the country, Kenya National Bureau of Statistics (KNBS) reveals. In the period under review, revenue from remittances significantly surpassed tourism, foreign direct investments, and key agricultural exports such as horticulture and tea revenues, placing it firmly as Kenya’s chief foreign revenue earner.

According to the Tourism and Wildlife Ministry’s performance report, Kenya’s tourism sector reached new heights in 2024, posting significant financial gains, with tourism earnings rising by 19.79 per cent to Sh452.20 billion, up from Sh377.49 billion in 2023.

In 2024, Kenya’s tea industry generated Sh250 billion in revenue from both local and international sales as horticulture exports earned Sh136.7 billion, down from $1.21 billion Sh156.3 billion in 2023, according to the 2025 KNBS report.

Additionally, the stock of Foreign Direct Investment (FDI) assets also rose by 15.1 per cent to Sh428.9 billion at the end of 2024, highlighting the growth of the foreign inflows in the country and proving remittances as the leading foreign inflows earner.

Kenya has emerged as the leading recipient of diaspora inflows in East Africa, receiving $4.8 billion (Sh674.1 billion) in 2024, which contributed 4.6 per cent of its gross domestic product (GDP), according to a World Bank report.

Leads region

It surpasses Somalia’s $1.73 billion (Sh223.5 billion) and Uganda’s $1.49 billion (Sh192.5 billion. Other countries in the region, such as Tanzania, Rwanda, and Burundi, recorded inflows below $1 billion (Sh129.2 billion). While Kenya has seen strong growth, the World Bank noted that sub-Saharan Africa as a whole experienced an estimated 2.4 per cent growth in remittance flows in the past year.

In the period under review, December accounted for the most remittances received, standing at Sh445.3 million,n with October following closely at Sh437.1 million. “The capital account balance improved by 80.3 per cent to a surplus of Sh31.2 billion in 2024, attributable to increased grants to finance public projects,” the KNBS report stated.

According to data from the Central Bank of Kenya (CBK), the US was the largest source of remittances to Kenya throughout 2024, accounting for 51 per cent of total inflows in the year.

However, this growth has been threatened as Donald Trump, the US president, continues to deport foreigners in the United States.  The Ministry of Foreign Affairs estimates that more than three million Kenyans reside in the Diaspora, with the majority in the United States and the United Kingdom.

While the US is a major contributor, other regions like the Americas (including Canada), Australia, and the Gulf also show growth in remittances to Kenya.

In Africa, Tanzania tops the list of remittance sources to Kenya, amounting to $6.9 million (Sh891.5 million), followed by Uganda, standing at $5.7 million (Sh736.5 million) and South Africa at $2.2 million (Sh284.2 million).

Kenyans living in the diaspora have become an integral part of Kenya’s economy as remittances continue to support Kenya’s current account and foreign exchange market, helping maintain adequate foreign reserves.

Additionally, these remittances have become a lifeline for many Kenyan families, aiding in basic needs like food, education, and healthcare. They also boost aggregate demand, encourage investment, and improve the trade balance.

The growth of diaspora remittances can also be attributed to the local financial institutions, which play a crucial role in facilitating remittances in Kenya by providing infrastructure, promoting financial inclusion, and developing targeted products for diaspora individuals.