Australia overtakes Germany, Saudi Arabia as fastest-growing source of Kenyan remittances
Overall, remittances from Kenyans abroad grew by 18.03 per cent year-on-year to nearly $4.95 billion (Sh637.93 billion), marking the highest growth in three years.
Kenyans in Australia boosted remittances to their home country, overtaking Germany and Saudi Arabia as the fastest-growing source of diaspora remittances in 2024.
Official figures from the Central Bank of Kenya (CBK) reveal that remittances from Australia totalled $184.13 million (approximately Sh23.75 billion) in the year ending December 2024, marking a 2.57 per cent increase from $106.70 million (Sh13.76 billion) in the previous year.
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The surge in remittances saw Australia leap ahead of other major sources of diaspora money, solidifying its place as the fastest-growing contributor to the country’s foreign remittance inflows. Australia is now among the five largest sources of remittances, collectively accounting for more than three-quarters of Kenya’s total diaspora inflows.
Meanwhile, Germany, which had the fastest growth rate of 35.71 per cent in 2023, saw a slowdown in remittance flows last year.
CBK noted that remittances from Germany grew by 12.19 per cent to $197.25 million (Sh25.45 billion) in 2024. The Middle East, a key destination for domestic and semi-skilled Kenyan workers, also experienced a slowdown.
“Remittances from Saudi Arabia, historically a top contributor, grew by only 9.01 per cent, reaching $403.12 million (Sh52.00 billion) in 2024,” reads the report.
The United States, however, saw a strong recovery in remittance inflows, growing 12.34 per cent to $2.63 billion (Sh339.17 billion), accounting for 53.17 per cent of total diaspora remittances. The United Kingdom also saw an increase, with remittances rising 7.01 per cent to $357.62 million (Sh46.13 billion), maintaining its position as the third-largest source of remittances.
Overall, remittances from Kenyans abroad grew by 18.03 per cent year-on-year to nearly $4.95 billion (Sh637.93 billion), marking the highest growth in three years.
“This rise was attributed to easing global inflation, which had previously reduced disposable income for many Kenyan diaspora workers due to rising living costs in the US and Europe following the economic disruptions caused by Russia’s invasion of Ukraine,” reads the report.
In January 2025, however, remittance growth showed signs of slowing, with a modest 3.63 per cent increase year-on-year to $427.38 million (Sh55.13 billion), compared to 18.04 per cent in the same month the previous year.
President William Ruto has made expanding employment opportunities for Kenyans abroad a key part of his administration's job creation strategy. Since taking office in 2022, Ruto has pledged to negotiate bilateral labour agreements with developed nations to send 250,000 Kenyans abroad each year, thus increasing remittances and providing job opportunities for Kenyan youth.
“It is my intention that every year we should be able to send 250,000 Kenyans to work in different parts of the world so that we can enhance and increase the number of people working abroad and enhance our remittances from abroad,” Ruto said in May 2024.
“I am committed and I believe that is doable because I can see that we are on the right trajectory.”
The largest share of these remittances typically goes towards supporting families in Kenya, including expenses for food, medical bills, and school fees, as noted in the Central Bank of Kenya’s 2021 Kenya Diaspora Remittances Survey.
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