Remittances from Kenyans living abroad declined in January 2024, falling by KSh2.3 billion compared to December 2024, according to the latest data from the Central Bank of Kenya (CBK). This dip follows a record-breaking month in December when diaspora inflows reached the highest amount ever recorded in Kenya’s history.
In January, Kenyans abroad sent home $427.4 million (approximately KSh55.2 billion), marking a decrease from the $445.4 million (KSh57.6 billion) remitted in December. Despite the month-on-month drop, the January remittances were still 3.6 percent higher than the amount received in January 2024, demonstrating steady year-on-year growth.
Diaspora remittances remain a crucial source of foreign exchange for Kenya, contributing significantly to household incomes and national economic stability. The CBK noted that cumulative remittances over the 12 months leading to January 2025 grew by 16.6 percent, reaching $4.96 billion (KSh641.1 billion). This was a notable increase from the $4.25 billion (KSh549.6 billion) recorded over the same period in 2024.
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The steady rise in annual remittances highlights the resilience of the Kenyan diaspora in supporting their families and investments back home. However, the month-on-month drop in January could be attributed to seasonal spending trends, as many Kenyans living abroad send more money home during the festive season in December.
Remittances are Kenya’s largest source of foreign currency inflows, surpassing earnings from traditional sectors like tourism and agriculture. The CBK continues to monitor these inflows closely, as they play a critical role in stabilizing the exchange rate and supporting economic growth.
With the global economic landscape constantly shifting, experts anticipate fluctuations in remittance patterns but remain optimistic about continued growth driven by Kenya’s expanding diaspora network.
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