In the month of February, Money spent by Kenyans living abroad (diaspora remittances) dropped from $412.4 million to $386.9 million remitted in January 2024.
January 2024 figure recorded at the beginning of this year was the best since August 2020. The cumulative inflows for the 12 months to February 2024 totalled $4,330 million compared to $4,026 million in a similar period in 2023, an increase of 7.5 per cent. The United States remained the largest source of diaspora remittances, accounting for 54 per cent in February.
According to Central Bank of Kenya (CBK) data, the country has enjoyed a growth in terms of money flowing into the country since September last year. The America region tops the chat as CBK puts the total money from USA, Canada, Bahamas, and other at $227,925 million in January, 2024. The region contributed $222,451 million in December last year and another $194,980, $203,284 million, and $203,492 million in September, October and November last year, respectively.
Within the Europe region, United Kingdom, Germany, Switzerland and Italy lead in that order, followed by Sweden, France, Norway, Belgium, Austria and others. Remittance from Europe region amounted to $85,007 million in January this year, the highest since January 2023.
Tanzania tops the African region, followed by Uganda and South Africa with remittances hitting $8,421 million, $6,017 million and $1,036 in January this year. Kenyans living in Nigeria, Ivory Coast, Zambia, South Sudan, Egypt and Malawi sent $471 million, $280 million, $487 million, $964 million, $195million and $135 million last month, respectively.
Saudi Arabia, Qatar, United Arab Emirates, Bahrain, India, Oman, Japan, Iraq, China, Australia and New Zealand are also listed as key source markets for Diaspora remittances.
According to CBK, the Kenya shilling remained stable against major international and regional currencies during the week ending March 14. It exchanged at Ksh 137.49 per US dollar compared to Ksh 142.07 per US dollar on March 7.
“The usable foreign exchange reserves remained adequate at USD 6,974 million as at March 14. It meets our statutory requirement to endeavour to maintain at least 4 months of import cover,” said the bank.
