Kenya’s diaspora remittances are expected to hit a new record high of Sh285.5 billion in 2019, fresh World Bank data shows.
This will represent a growth of a measly five percent compared to a 39 percent rise in money sent home by Kenyans abroad between 2017 and 2018. The five percent growth is the slowest since 2015 and is largely attributed to rising economic concerns in the US and the UK, where analysts say a recession is on the horizon.
The World Bank data shows that the lion’s share of diaspora inflows comes from Kenyans living and working the United States followed by the United Kingdom, Uganda, Tanzania, Canada and Australia.
The data further shows that Kenya is the fourth-largest recipient of diaspora remittances in Africa behind Egypt, Nigeria and Ghana. In the period under review, Uganda is expected to receive 150 billion from diaspora while Tanzania will get Sh95 billion and Rwanda (Sh25 billion).
The number of Kenyan nationals living and working in the diaspora is estimated at 1.08 million but it could be as high as three million if the population of undocumented immigrants is factored in.
The World Bank data does not, however, capture the remittances from sources such as Saudi Arabia, UAE and other Middle East countries where a significant number of semi-skilled Kenyans are domiciled.
Since 2015, diaspora inflows have been Kenya’s top foreign exchange income earner ahead of tourism, tea, coffee and horticulture exports.
Last year, the World Bank placed Kenya’s diaspora remittances at Sh280 billion, which was Sh38 billion more than the rest of Eastern Africa nations including Uganda, Tanzania, Rwanda, Burundi, South Sudan, and Ethiopia combined (Sh242 billion). North America was the leading continent in terms of inflows with 47 percent, followed by Europe (24 percent) and the rest of the world (29 percent).
