As recorded by the Central Bank of Kenya (CBK), Diaspora Kenyans have from January 2004 to December 2023 (20 years) remitted $34 billion. The yearly remittances have grown from $338 million (2004) to $4.18 billion (2023). The exchange rate during the period ranged from 1 dollar to Ksh 65 - Ksh 157. The remittances received in the 20 years are estimated at Ksh 4 trillion.
During the same period the Kenya Banking sector has progressively grown from total deposits of Ksh 378 billion and loan advances of Ksh 252 billion in 2004 to deposits of 4.7 trillion and loan advances of Ksh 3,3 trillion in 2022. The estimated Ksh 4 trillion has played a role in growing the bank deposits and the loan advances issued from the deposits.
The remittances have also played a role in development. The Diaspora University Town (DUT) project that traces its roots almost 20 years ago when Diaspora Kenyans started thinking of ways to grow the Kenya economy is one of the developments. The DUT project whose valuation is at Ksh 5 billion has remittances of about 500 Diaspora Kenyans applied and valued in the project.
In the next 5 years projections are Diaspora will remit over $20 billion based on the $4 billion remittances already achieved in 2022 and 2023. In the next 5 years Diaspora University Town (DUT) will be one of the projects where the amounts remitted will go to.
DUT goal is to achieve 5%, about $500 million of the projected $20 billion remitted to the DUT project. The amount will be applied in building 4,000 buildings and opening over 200 MSMEs in Kenya. The amount will be part of creating new wealth, property and MSMEs. The new wealth created will grow to a value of about $1.5 billion.
