The Central Bank of Kenya (CBK) has reported remarkable growth in diaspora remittances, with September 2024 figures reaching USD418.5 million (Sh54 billion).
This represents a 22.9% increase from the previous year’s USD340.4 million (Sh44 billion). This notable expansion in foreign inflows is in harmony to the increasing number of Kenyans pursuing opportunities abroad, supported by proactive government initiatives to secure international employment placements. The financial impact of these remittances has been particularly significant, with cumulative inflows for the year ending September 2024 totaling USD4,723 million (Sh610 billion), marking a 14% rise from the preceding year’s USD4,142 million (KSh535 billion). CBK Governor Kamau Thugge has emphasized the United States’ dominant role in these transfers, contributing 55.4% of total remittances in September 2024.
These consistent inflows have contributed to the stability of the Kenyan Shilling, which maintained an exchange rate of Sh129.20 against the US dollar as of October 24, 2024. Prime Cabinet Secretary Musalia Mudavadi has outlined an ambitious vision for the Kenya Kwanza Government, targeting Sh1 trillion in diaspora remittances by 2027. Speaking at the Western Kenya Edition of the Diaspora Job Fair, Mudavadi emphasized that this goal is achievable through expanded bilateral agreements and government interventions to increase overseas employment opportunities for Kenyans.
The government’s commitment to this objective has been demonstrated through recent initiatives, including coordinated job interviews at the Kenyatta International Convention Centre and Kabete National Polytechnic for positions in Qatar. The Ministry of Labour has taken a strategic approach by developing a “National Strategy for Skills Development for Labour Migration.” This comprehensive framework aims to leverage diaspora expertise for technology transfer, technical assistance, and career development while promoting economic resilience. The strategy aligns with the government’s broader objective of strengthening both international employment opportunities and domestic job creation.
International partnerships are playing a crucial role in this economic transformation, with countries like Israel expressing interest in Kenya’s agricultural sector. These collaborations are designed to address global food security concerns while simultaneously boosting local employment opportunities and economic growth. The upcoming 11th Kenya Diaspora Homecoming Convention, themed “Knowledge & Skills for Resilience and Growth,” will serve as a platform for engaging the global Kenyan diaspora in developmental dialogue. Diaspora remittances have now emerged as the largest single source of overseas funds to Kenya’s economy, surpassing traditional foreign capital sources.
