Sharp Daily
No Result
View All Result
Monday, May 26, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Economy

Diaspora remittances: The hidden engine of Kenya’s economy

Ivy Mutali by Ivy Mutali
May 5, 2025
in Economy, Investments
Reading Time: 2 mins read

While exports and foreign aid dominate economic headlines, diaspora remittances have quietly become Kenya’s top foreign exchange earner. In 2024, Kenyans abroad sent home a record USD 4.9 billion, surpassing revenue from tea, coffee, horticulture, and even tourism. These flows are no longer just a lifeline for families, they are a foundational pillar of Kenya’s economic resilience and financial stability.

At the household level, remittances provide critical support for education, healthcare, housing, and day-to-day expenses. They directly reduce poverty, promote access to services, and empower families to invest in small businesses, agriculture, and other informal economic activities. A growing number of diaspora Kenyans are also funding property development, agro-business ventures, and local enterprise start-ups.

On a macroeconomic scale, these inflows help stabilize the Kenyan shilling by providing a steady supply of foreign exchange. As of May 2, 2025, the shilling was holding relatively firm at KES 129.4 per US dollar, supported in part by strong remittance inflows. The Central Bank of Kenya (CBK) has credited these funds with helping narrow the current account deficit and cushion the country’s forex reserves, which stood at USD 7.47 billion last week, enough for over 4 months of import cover.

Technology has made it easier and safer for the diaspora to remit and invest. Mobile platforms like Absa’s Timiza, NCBA Loop, and digital real estate portals have opened up access to Kenyan markets for the diaspora. The Central Bank of Kenya (CBK) has also promoted transparency in remittance channels, while encouraging competition to lower transaction fees.

RELATEDPOSTS

No Content Available

Still, challenges persist. High costs, fraud, and a lack of structured investment vehicles hinder the full potential of diaspora capital. Many remitters remain exposed to scams or invest informally without due diligence. To tap this untapped engine, stakeholders must offer safer investment vehicles such as diaspora bonds, SACCO products, and regulated REITs.

Kenya must reframe its view of the diaspora, not just as remitters, but as investors, innovators, and partners in development. With targeted incentives and stronger policy frameworks, remittances could shift from household consumption to national wealth creation

Previous Post

Inflation bites as schools reopens for May 2025

Next Post

Balancing between inflation and unemployment

Ivy Mutali

Ivy Mutali

Related Posts

Economy

Concerns grow over Kenya’s duty-free trade deal with the U.S.

May 22, 2025
Investments

SACCO’s at the heart of rural financial inclusion in Kenya

May 22, 2025
Investments

Real yields vs. nominal yields on Kenya’s government bonds

May 21, 2025
Economy

Financial literacy is key to youth economic resilience in Kenya

May 21, 2025
Economy

Kenya signs recruitment deal with UK Crown dependencies

May 20, 2025
Economy

Kenya’s economy gains momentum in April, Stanbic PMI shows

May 20, 2025

LATEST STORIES

The Green Season Secret

May 23, 2025

Restructure housing levy to solve Kenya’s housing crisis

May 23, 2025
NCBA Bank

NCBA group records 3.4% profit growth in Q’1 2025

May 23, 2025

The rise of satellite towns: Redefining urban growth in Kenya

May 23, 2025

Concerns grow over Kenya’s duty-free trade deal with the U.S.

May 22, 2025

Lessons from Equity Bank’s M-Pesa scandal

May 22, 2025

SACCO’s at the heart of rural financial inclusion in Kenya

May 22, 2025

Kenya’s insurance sector in 2025

May 22, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024