Kenyan diaspora remittances grew by 10% in 2021, data shows
Public Central Bank of Kenya (CBK) data shows remittances from Kenyans living in the diaspora grew by 10 per cent last year despite economic uncertainty due to the Covid-19 pandemic.
The new data shows that Kenyans in the diaspora sent home Sh3.4 billion in the 11-months to November last year compared to Sh3.1 billion same period the previous year.
Remittances from abroad have grown from Sh0.9 billion in 2011 to Sh3.4 in ten years, sustaining Kenyans during tough times such as 2020 when earnings from tourism, and other sectors dried out.
Of the amount sent last year, Sh2.1 billion came from North America while about Sh630 million came from Europe and another Sh629 from the rest of the world.
Money sent by Kenyans abroad mostly is sent to families and friends for food and school fees with less long term returns.
Household needs
Most funds sent home by Kenyans working abroad funds immediate household needs, with little saving for investment, a new survey shows.
A Kenyan diaspora remittance mapping conducted by Pangea released in November shows food, medical expenses and school fees took up to 50 per cent of $3 billion (Sh300 billion) sent to the country last year.
This is, however, an improvement compared to five years ago when up to 75 per cent of diaspora remittances was used to settle household needs.
The study sampled 157 respondents from 27 countries where Kenyan citizens work and shows a growing appetite for investment opportunities in Africa from the diaspora.
Diaspora remittances is currently Kenya’s highest forex earner after edging out tea in 2018.
