UK, Germany Emerge as Top Destinations for Kenyan Workforce

The Kenyan diaspora is a critical pillar of the Kenyan economy.

Remittances, the money they send back home, have become one of the country's leading sources of foreign exchange, surpassing traditional exports like coffee and tea. In 2023 alone, a staggering $4.19 billion (approximately Sh543 billion) flowed into Kenya from its diaspora communities. This figure represents a 4% increase and is projected to continue its upward trajectory in 2024. Europe stands out as a major destination for Kenyan expatriates, second only to North America.

Within Europe, the United Kingdom, Germany, Switzerland, and Italy are the leading remittance contributors, followed by Sweden, France, and other countries. In January 2024, Europe's remittances reached a record high of $85 million (Sh11.1 billion). Recognizing the significant impact of diaspora remittances, the Kenyan government is actively working to facilitate labour mobility. Initiatives include a bilateral agreement with the UK that has enabled 280 Kenyan nurses to find employment there.

Similar agreements are being pursued with eight other European nations, including Germany, Austria, and Ireland. This collaborative effort aims to identify and secure employment opportunities for skilled Kenyans in the European market. Furthermore, the government is streamlining the pre-departure process for migrant workers and establishing labour migration desks at major airports to ensure adherence to regulations. These measures aim to make migration smoother and more efficient for Kenyans seeking work abroad.

The Central Bank of Kenya (CBK) monitors the flow of money sent back home by Kenyans living abroad, leveraging its banking system oversight. These remittances, estimated at roughly $400 million annually, have emerged as a significant source of foreign exchange, rivalling established sectors like tea, coffee, horticulture, and tourism. This burgeoning sector has garnered considerable attention from both the government and private entities. Technological advancements are at the forefront of these efforts with a focus on developing solutions that provide deeper insights into remittance trends and facilitate efficient investments within the domestic economy.