Remittances in slight rise in January to Sh14bn

Kenyans working abroad sent home $137.5 million (Sh13.8 billion) in January, a slight increase from the $134 million (Sh13.5 billion) that was sent a month earlier.

Data from the Central Bank of Kenya (CBK) shows that the 2.6 per cent increase in remittances was helped by improved inflows from non-traditional sources (the rest of the world). Traditional sources are North America and Europe.

Compared to January last year, the increase was, however, about 20 per cent.

“The rest of the world, though accounting for the least amount by volume and market share, contributed most of the increase in remittances inflows in January 2016, and fully offset the decline recorded from North America and Europe,” said the CBK.

Remittances from markets excluding Europe and North America accounted for 24.3 per cent of all money that was sent in January, which is an increase from 18.2 per cent that was sent last December.

In monetary value these markets accounted for $33.3 million (Sh3.3 billion) up from $24.4 million (Sh2.47 billion) that was sent over the same period a year ago.

Remittances from North America and Europe accounted for 46.2 per cent and 29.6 per cent of all the cash that was sent home in January and in monetary terms, inflows from the two regions stood at Sh63.4 billion and Sh4.1 billion respectively.

Diaspora remittances rose to Sh154 billion in 2015 from the previous year’s Sh141 billion, a 9.3 per cent increase.

Analysts say that they expect an increase in remittances going forward which will augur well for the shilling.

“We expect the shilling to remain stable given support from a strong dollar reserve, expected reduction in development expenditures, improved forex inflows from remittances and tea exports,” said a market report by Cytonn Investments.