US lifts August diaspora inflows to record Sh55bn
Kenyans living and working abroad sent home $427.2 million (Sh55.13 billion in August, marking a new record in a single month.
Kenyans living and working abroad sent home $427.2 million (Sh55.13 billion in August, marking a new record in a single month.
Data from the Central Bank of Kenya (CBK) shows diaspora remittances rose from $414.3 million (Sh53.46 billion) posted in the previous month, with the growth mainly driven by Kenyans residing in North America.
The August figure means daily remittances were averaging Sh1.78 billion. This has sent the cumulative eight-month remittances to $2.81 billion (Sh362.4 billion) compared with $2.77 billion (356.9 billion) that was received in a similar period last year. Remittances from the North American region, which includes countries such as Canada, the United States of America, and Mexico, rose by 9.9 per cent to $250.1 million (Sh32.27 billion) to account for 58.5 per cent of all remittances.
CBK surveys remittance inflows every month through formal channels that include commercial banks and other authorised international money-sending service providers in Kenya.
The US has the highest number of Kenyan migrants (157,000) followed by the United Kingdom (139,000), according to the dataset of International Migrant Stock 2020 by the United Nations Department of Economic and Social Affairs.
Washington-based Pew Research Centre's previous estimates showed about 90,000 Kenyans are living in America, including as many as 30,000 illegally.
The increased receipts from North America came at a time when those from Europe fell by 7.1 per cent to $68.45 million (Sh8.83 billion) while those from the rest of the world posted a 3.8 per cent decline to $108.67 (Sh14 billion).
In June, CBK revised its annual growth forecast for diaspora remittances to 12 per cent from five per cent. This was after a 20 per cent growth in the first four months. Since 2015, diaspora remittances have been the largest source of foreign cash flows into Kenya, surpassing tourism, foreign direct investments, and key agricultural exports such as horticulture and tea.
The government said in February it was planning to roll out incentives to Kenyans in the diaspora to boost remittances to at least Sh1 trillion a year and boost the country’s foreign exchange reserves.
The State Department for Diaspora Affairs opened the search for a consultant to conduct a baseline survey that would guide in development of a framework and tactical plan for enhancing remittances.
Remittances from Kenyans living and working abroad have averaged $3.56 billion (Sh459.38 billion) in the last five years, growing by four per cent last year to hit $4.19 billion (Sh540.67 billion), according to CBK data.
