This archive report was first published on 23 August 2021.
According to data from the Central Bank of Kenya (CBK), overseas remittances have continued to play a crucial role in Kenya's economy, reaching KSh230 billion ($2.1 billion) in the first seven months of this year.
July saw the highest amount of inflows ever recorded in Kenya, with $336.7 million pouring into the country, surpassing the $305.9 million received in June and the $277 million received in July 2020.
The United States remains the largest source of remittances into Kenya, accounting for 58.3% of all remittances in July, with diaspora remittances from the US reaching $196 million.
Tanzania is the leading source of remittances into Kenya among African countries, with remittances from Tanzania amounting to $4.02 million in June, accounting for 28% of the total remittances from African nations.
Kenya heavily relies on diaspora remittances as a source of foreign exchange and for economic development, with the funds enabling low-income earners to pay for education and healthcare.
As the Central Bank continues to work with the diaspora community to increase inflows into the country, remittances are projected to surpass the record set in 2020, when diaspora remittances reached an all-time annual high of $3.1 billion (KSh 340 billion).
