NAIROBI, Kenya – Kenyans living abroad increased the money they sent home by $18.7 million (Sh2.4 billion) in October 2024, marking a significant boost for the country’s economy.
According to the Central Bank of Kenya (CBK), remittances for the month totaled $437.2 million (Sh56.7 billion), up from $418.5 million (Sh54.4 billion) in September.
The October remittances also marked a 22.9% year-on-year increase compared to the $355.6 million (Sh46 billion) recorded in the same month in 2023.
Cumulative inflows over the 12 months to October 2024 reached a record $4.8 billion (Sh623 billion), reflecting a 15.3% growth from the $4.1 billion (Sh532 billion) registered during the same period last year.
CBK attributed the sustained growth in remittances to the increasing number of Kenyans seeking opportunities abroad and the critical role these inflows play in supporting the current account and stabilizing the foreign exchange market.
The United States remained the top source, contributing 53.7% of October’s remittances.
“Remittance inflows continue to support the current account and the foreign exchange market,” CBK noted in its weekly bulletin released on Friday, November 15.
October’s strong performance capped a series of high inflow months in 2024, including January, August, and September, which were also among the year’s best-performing periods for dollar inflows.
The rise in remittances coincided with an increase in Kenya’s foreign exchange reserves, which hit a three-year high of $9.27 billion (Sh1.2 trillion) by November 14.
This marked an 8.6% jump compared to a week earlier, driven in part by dollar inflows from diaspora remittances and a recent International Monetary Fund (IMF) disbursement.
CBK assured that the reserves remain adequate, covering 4.8 months of imports, above the statutory minimum of four months.
Despite the boost from diaspora remittances, the Kenyan shilling weakened marginally against the US dollar.
The currency traded at Sh129.35 per dollar on November 15, compared to Sh129.20 a week earlier.
Traders attributed the depreciation to a stronger dollar globally, following recent US presidential election results, which have increased demand for foreign currency.
According to the Central Bank of Kenya (CBK), remittances for the month totaled $437.2 million (Sh56.7 billion), up from $418.5 million (Sh54.4 billion) in September.
The October remittances also marked a 22.9% year-on-year increase compared to the $355.6 million (Sh46 billion) recorded in the same month in 2023.
Cumulative inflows over the 12 months to October 2024 reached a record $4.8 billion (Sh623 billion), reflecting a 15.3% growth from the $4.1 billion (Sh532 billion) registered during the same period last year.
CBK attributed the sustained growth in remittances to the increasing number of Kenyans seeking opportunities abroad and the critical role these inflows play in supporting the current account and stabilizing the foreign exchange market.
The United States remained the top source, contributing 53.7% of October’s remittances.
“Remittance inflows continue to support the current account and the foreign exchange market,” CBK noted in its weekly bulletin released on Friday, November 15.
October’s strong performance capped a series of high inflow months in 2024, including January, August, and September, which were also among the year’s best-performing periods for dollar inflows.
The rise in remittances coincided with an increase in Kenya’s foreign exchange reserves, which hit a three-year high of $9.27 billion (Sh1.2 trillion) by November 14.
This marked an 8.6% jump compared to a week earlier, driven in part by dollar inflows from diaspora remittances and a recent International Monetary Fund (IMF) disbursement.
CBK assured that the reserves remain adequate, covering 4.8 months of imports, above the statutory minimum of four months.
Despite the boost from diaspora remittances, the Kenyan shilling weakened marginally against the US dollar.
The currency traded at Sh129.35 per dollar on November 15, compared to Sh129.20 a week earlier.
Traders attributed the depreciation to a stronger dollar globally, following recent US presidential election results, which have increased demand for foreign currency.
