Remittances refer to the transfer of money by diaspora citizens to individuals back in their home country.
In most developing countries, remittances and foreign aid account for the largest chunk of inflows.
Remittances are Kenya’s largest source of foreign exchange, ahead of tea, horticulture and tourism.
The Central Bank of Kenya conducts a survey on remittance inflows every month through formal channels that include commercial banks and other authorised service providers.
Remittances in Kenya averaged $77,815,980 from 2004 until 2017, reaching an all time high of $161,501,000 in May 2017 and a record low of $25,154,000 in January 2004.
Overall, remittances in Kenya have been on the rise over the years.
In June 2016, the Brexit vote caused a dip in the amount of money sent back home by 6.3 per cent compared to the previous month.
In May 2017, the inflows from abroad peaked at an all-time monthly high of $161.5 million (Sh16.6 billion). The healthy inflows have provided a buffer for the shilling in 2017
A 23.7 per cent growth in flows from Europe was responsible for the $160,941,000(about Sh16 billion) record inflows sent in May 2017.