Kenya Marks International Day of Family Remittances with Renewed Push to Unlock Diaspora’s Development Potential
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In a powerful tribute to the enduring impact of diaspora communities, the International Fund for Agricultural Development (IFAD) and Kenya’s Ministry of Foreign and Diaspora Affairs, through the State Department for Diaspora Affairs, marked the International Day of Family Remittances (IDFR) today at a Nairobi.
The event brought together an impressive array of stakeholders from the public sector, private financial institutions, development agencies, and diaspora representatives, united under this year’s global theme: “Remittances Financing Development.”
The Principal Secretary for Diaspora Affairs, Ms. Roseline K. Njogu, delivered a keynote address emphasizing that remittances are “far more than financial transactions. They are lifelines of hope, bridges of connection, and powerful engines of economic development.”
“In our national context, remittances symbolize the unbreakable bonds between our citizens at home and those who have ventured abroad in pursuit of opportunity,” said Ms. Njogu.
Transforming Remittances into Development Capital
Over the past decade, Kenya has witnessed a dramatic evolution in the remittance landscape, marked by digital innovation and increased accessibility. Mobile money platforms and fintech solutions have revolutionized cross-border transfers, making it easier, faster, and more secure for diaspora members to support their families back home.
Despite these advancements, the cost of sending money to Kenya remains a major concern. According to PS Njogu, remittance costs average above 6%, which is still far from the 3% global target set under Sustainable Development Goal 10.c. This disproportionately affects marginalized communities and rural populations where access to digital and financial services is still limited.
The forum served as a strategic platform to align efforts around reducing transaction costs, improving digital infrastructure, implementing financial literacy programs, and establishing inclusive policy frameworks that protect both remitters and recipients.
“Let us view remittances not as a peripheral economic activity, but as a strategic national asset,” Ms. Njogu urged attendees, emphasizing the importance of multi-stakeholder collaboration.
Kenya: A Regional Leader in Remittance Inflows
According to recent data, remittances remain one of Kenya’s most vital sources of foreign exchange, with inflows reaching USD 4.945 billion in 2024, equivalent to 3% of GDP. In January 2025 alone, remittance inflows stood at USD 427.6 million, a 3.63% increase from the same month in 2024. The United States remains the largest single source of these transfers.
Kenya ranks fourth in Africa in terms of remittance volumes, following Egypt, Morocco, and Nigeria.
These funds support not just consumption, but increasingly contribute to investment, education, healthcare, and climate adaptation, particularly in rural areas—core to IFAD’s mission of eradicating poverty and hunger.
IFAD’s Global and Local Commitment
Speaking at the event, IFAD representatives highlighted that 2025 marks the 10th anniversary of IDFR, first adopted by the IFAD Governing Council in 2015 and later recognized by the United Nations General Assembly in 2018.
“In 2024 alone, over USD 685 billion was sent by migrants to low- and middle-income countries,” IFAD officials noted. “These flows are private, but their impact is public—sustaining livelihoods, empowering women and youth, and boosting local economies.”
IFAD emphasized that with proper policies, remittances can evolve from short-term support to long-term development finance. The agency is working with local partners—including FSD Kenya, SASRA, the Central Bank, Credit Bank, Onafriq, and others—to promote rural financial inclusion, entrepreneurial growth, and diaspora investment.
The event also underscored IFAD’s role in the upcoming Fourth International Conference on Financing for Development (FfD4) in Sevilla, where remittances will be a key focus of global development financing dialogues.
Looking Ahead: A Call to Action
The forum concluded with a strong call for enhanced diaspora engagement through policy reform, increased investment opportunities, and a renewed focus on financial literacy. PS Njogu highlighted the need to empower diaspora communities with the knowledge and tools necessary to maximize the returns on their hard-earned money—both for their families and the broader national economy.
“The story of our nation’s economic resilience and growth is being written by millions of hands—those working tirelessly abroad and those managing opportunities at home,” she said. “Today, we recommit ourselves to supporting and amplifying their efforts.”
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