This archive report was first published on 21 June 2021.
Remittances from Kenyans living and working abroad have been a vital source of foreign currency for Kenya, and in May 2021, they reached a record high of Ksh34 billion ($315 million), according to the Central Bank of Kenya (CBK).
This figure represents a 22.3 percent increase from the same period in 2020, with the majority of the remittances coming from the United States. In May 2021, Kenyans in America sent home Ksh2.05 billion ($190.7 million), the highest fiscal amount ever sent from the US.
The surge in remittances from America was a significant contributor to the overall increase, with a 31 percent rise from Ksh15.5 billion to Ksh20.4 billion. This upward trend is a welcome development, especially considering the socio-economic setbacks attributed to Covid-19 in the continent and the rest of the world.
Despite the challenges, the CBK has reported an increase in remittances from Kenyans abroad, with Ksh6.02 billion dispatched into local financial institutions in 2021. This is a significant improvement from the Ksh7.43 billion remitted in 2020 and the Ksh7.83 billion received in 2019.
The consistent rise of remittances from North America over the last three years is a notable trend, and efforts are being made to smoothen the conveyance of funds to Kenya. The Central Bank, Kenya Bureau of Statistics, and the Ministry of Foreign Affairs have converged efforts to improve channels of sending and receiving monies from overseas.
Remittances are critical in sustaining livelihoods for Kenyans who rely on their families abroad, and improving these channels is essential for the country's economic growth.
