Kenya’s Diaspora Remittances Hit a Record High of Sh421 Billion in 2021

Kenyans abroad have set a new all-time yearly record for diaspora remittances after sending home $3.718 billion (Sh421.6 billion) in 2021.

The inflows grew 20.2 percent from $3.094 billion (Sh350.9 billion) remitted in the previous year, according to the latest data from the Central Bank of Kenya (CBK).

December recorded the highest remittances in the 12-month cycle as Kenyans living and working in the diaspora sent home $350.6 million (Sh39.8 billion), a new monthly record. The December remittances were Sh3.5 billion higher than Sh36.3 billion ($320.1 million) sent in November, representing a 9.5 percent increase.

The United States remained the largest source of remittances, accounting for 63.2 percent of the diaspora inflows last year.

Other key source markets include the UK, Germany, and Canada as well as Gulf states including Saudi Arabia, United Arab Emirates, Qatar, and Bahrain. The leading African source markets for remittance inflows into Kenya are Tanzania, Uganda, and South Africa.

Diaspora remittances remain the largest source of foreign income for the country ahead of earnings from tourism, tea and horticulture exports. CBK carries out a monthly survey of diaspora remittances through formal channels such as commercial banks and other authorized international remittances service providers.

A 2021 survey by non-profit Pangea Trust showed that nearly 50 percent of the diaspora remittances go into supporting family and friends, taking Sh49 out of every Sh100 sent. 17 percent of the remittances go to charities and religious groups while investments, including support for setting up businesses and buying real estate, take up about 15 percent of the flows.