CBK and KNBS Launch Year-Long Survey to Track KSh666 Billion in Diaspora Remittances

The Central Bank of Kenya (CBK) and the Kenya National Bureau of Statistics (KNBS) have initiated a comprehensive year-long survey. 

This ambitious project, conducted in partnership with Financial Sector Deepening Kenya, seeks to dissect the flow and application of funds sent home by Kenyans living abroad, a financial lifeline now exceeding the economic contributions of both agriculture and tourism. With remittances reaching a record KSh666.7 billion in 2024, constituting approximately four percent of Kenya's GDP, the stakes are undeniably high. 

The survey aims to move beyond surface-level observations, delving into the specifics of expenditure, investment choices, and the hurdles encountered during transactions. North America and Europe remain dominant sources, accounting for 58 and 26 percent, respectively, while the United Arab Emirates is emerging as an increasingly significant player in this dynamic landscape.

Previous studies suggest that most remittances are allocated to essential needs like food, healthcare and education. However, there's a discernible shift towards investments in ventures such as businesses, property, and diverse financial products. 

As CBK Governor Kamau Thugge stated, the survey promises to unveil "the most accurate and comprehensive picture yet" of remittances' influence on households and the broader national economy.

Stakeholders, including Kenya Diaspora Alliance chairperson Shem Ochuodo, are advocating for targeted interventions like diaspora bonds, combined with enhanced access to financial education, to stimulate productive investment.