Kenya Leads Eastern Africa in Diaspora Remittances; South Sudan and Somalia Most Dependent

Kenya has emerged as the leading recipient of diaspora inflows in East Africa, receiving $4.8 billion in 2024, far surpassing Somalia’s $1.73 billion and Uganda’s $1.49 billion, according to the latest World Bank data. Other countries in the region, such as Tanzania, Rwanda, and Burundi, recorded inflows below $1 billion.

The Democratic Republic of Congo and South Sudan experienced year-on-year declines, with inflows dropping to $1.35 billion and $1.14 billion, respectively. Despite this, remittances continue to play a critical role in the economies of countries like South Sudan and Somalia, contributing 17.5 percent and 13.6 percent of GDP in 2024.

Kenya’s remittances-to-GDP ratio reached 4.6 percent after steady growth from $51 million in 2001. In contrast, Tanzania reported only $757 million in inflows, accounting for 1 percent of its GDP. Similarly, Burundi averaged just below $50 million annually since 2018, contributing 1.6 percent to GDP.

Globally, diaspora remittances to low and middle-income countries are expected to hit $685 billion in 2024, overtaking Foreign Direct Investment (FDI) and Official Development Assistance (ODA). Over the past decade, remittances have grown by 57 percent, while FDI has declined by 41 percent, driven by migration, income disparities, and climate change.

India led global remittance recipients with $129 billion in 2024, followed by Mexico, China, the Philippines, and Pakistan. In Africa, Egypt received $22.65 billion, followed by Nigeria with $19.84 billion and Morocco with $12.05 billion. The World Bank emphasized the importance of leveraging remittances to reduce poverty, finance social services, and improve financial inclusion.

Source: Zawya