Kenya weighs investment options as diaspora remittances hit $4.17 billion

Kenya continues to experience an increase in its diaspora remittance, leaving room for some conversations to be had. One such conversation is how the Kenyan government can utilize some of the money realized from these remittances to invest locally. This is especially relevant now considering that when computed, the total remittance in Kenya could reach a new high for 2023.

The Central Bank of Kenya has revealed that the “total money remitted by Kenyans abroad in the 12 months to November 2023 was $4.17 billion, from $4.021 billion in the same period last year,” as seen in a report by The East African publication.

The increase occurred in spite of the Kenyan government’s intention to use a portion of the remittances from the diaspora to invest in domestic equity and bond markets, as foreign investment fell during the period under review.

According to the Diaspora Remittances Survey published in January by the CBK, a little less than 1% of diaspora remittances have been used to invest in financial market engines such as bonds or shares.

Source: BI