In 2024, Kenyans residing in Australia emerged as the fastest-growing source of diaspora remittances, outpacing contributors from Germany and Saudi Arabia.

This notable trend is part of a broader resurgence in dollar inflows from Kenyans abroad, recovering after a two-year decline. Official data released on Wednesday reported that remittances from Australians of Kenyan origin reached $184.13 million (approximately Sh23.75 billion) in 2024, marking an increase of 2.57% from $106.70 million (around Sh13.76 billion) in 2023. This growth positioned Australia prominently among the top five sources of remittances to Kenya, which together represent over 75% of total inflows. In contrast, remittances from Germany, which experienced a remarkable growth rate of 35.71% in the previous year, slowed significantly.

Kenyans living in Germany sent home $197.25 million (approximately Sh25.45 billion) in 2024, reflecting a more modest growth of 12.19%. This decrease follows the establishment of a labour migration agreement signed between Kenya and Germany in May 2024. Similarly, the growth trajectory of remittances from Saudi Arabia, a historical hub for Kenyan domestic and semi-skilled labour, has also decelerated. In 2024, Kenyans in Saudi Arabia contributed $403.12 million (about Sh52.00 billion) in remittances, a 9.01% increase from the prior year.

Despite this slowdown, Saudi Arabia retained its position as the second-largest source of remittances after the United States. The United States experienced a resurgence in remittance inflows after two consecutive years of decline. Remittances from Kenyans in the US grew by 12.34%, totalling $2.63 billion (approximately Sh339.17 billion), representing 53.17% of total diaspora remittances. Meanwhile, the United Kingdom saw an increase of 7.01% in remittances, amounting to $357.62 million (approximately Sh46.13 billion), thereby maintaining its status as the third-largest source.

Overall, total remittances from Kenyans abroad rose by 18.03% year-on-year in 2024, reaching nearly $4.95 billion (approximately Sh637.93 billion). This marks the highest growth rate in three years and is largely attributed to easing global inflationary pressures. The economic challenges resulting from the surge in energy and food prices following Russia's invasion of Ukraine in February 2022 had previously constrained disposable income for Kenyans overseas.

However, diminished inflationary growth in 2024 has allowed for increased remittance flows back to Kenya. Data from the Central Bank of Kenya indicates that while the remittance growth for January 2024 was recorded at a more modest 3.63%, amounting to $427.38 million (approximately Sh55.13 billion), this represents a slowdown compared to the 18.04% rise observed in January 2023. President William Ruto has made it a priority to broaden employment opportunities for Kenyans abroad as part of his job creation strategy.

Since taking office in September 2022, he has committed to negotiating bilateral labour agreements with developed nations, aiming to facilitate the placement of 250,000 Kenyans in overseas employment annually to enhance remittances and job availability. The largest share of remittance funds is typically directed toward supporting families in Kenya, covering expenses such as food, household goods, medical fees, and educational costs, as detailed in the Central Bank's Kenya Diaspora Remittances Survey Report of December 2021.