Kenyans living and working abroad sent home Sh189.4 billion ($1.75 billion) in the six months of the year, defying the persisting Covid-19 economic disruptions in the source markets.
Central Bank of Kenya (CBK) data shows the inflows increased by a fifth from Sh158.2 billion ($1.46 billion) received in a similar period to mark the fastest half-year jump since June 2018.
Kenyans living and working abroad sent home Sh189.4 billion ($1.75 billion) in the six months of the year, defying the persisting Covid-19 economic disruptions in the source markets.
Central Bank of Kenya (CBK) data shows the inflows increased by a fifth from Sh158.2 billion ($1.46 billion) received in a similar period to mark the fastest half-year jump since June 2018.
Kenya had received Sh156.86 billion remittances in the first half of 2019 — a jump of 5.2 percent from the preceding similar period — meaning that the latest jump beats what was achieved before coronavirus disruption.
Remittances from North America and Europe grew by 37.8 percent and 41.4 percent respectively to grow the overall inflows despite those from the rest of the world posting a 25.2 percent dip.
Cash from Kenyans in North America, which includes Canada, the United States and Mexico hit Sh115.7 billion to account for 61.1 percent of total remittances up from 53.1 percent in the previous half-year.
“The United States continues to be the largest source of remittances into Kenya, accounting for 58.8 percent of remittances in June 2021,” CBK said.
Europe’s remittances grew from Sh27.3 billion to Sh38.6 billion — an equivalent of 20.4 percent of all inflows. The rest of the world brought in Sh35.1 billion.
The Central Bank surveys remittance inflows every month through formal channels that include commercial banks and other authorised international remittances service providers in Kenya.
Washington-based Pew Research Centre previous estimates show 90,000 Kenyans live in the US, including as many as 30,000 without approval.
Inflows from the United Kingdom, Saudi Arabia, Qatar and Germany also make up key contributors to total remittances.
The remittances have been the country’s largest source of foreign exchange since 2015 when they overtook earnings from tea exports.
Other key sources of foreign exchange include tourism receipts as well as horticulture and coffee exports.
Currently, Kenya tops in diaspora remittances in the eastern African region and the amount the country receives constitutes the single largest source of foreign currency ahead of major crops and tourism.
Strong remittances position has helped keep the shilling relatively stronger especially when exports and tourism took a hit on the back of coronavirus disruptions such as airport closures.
CBK’s foreign exchange reserves closed last Friday at $9.62 billion (Sh1.04 trillion), translating to 5.87 months import cover.
The first half performance sets stage for the country to surpass the Sh334.78 billion ($3.094 billion) that was sent in last year.
This reinforces the assertions of 2019 Migration and Development report that remittances were now “on track to become the largest source of external financing in developing countries.”
The continued growth also defies the fact that remittance costs for many African countries remain high when compared to United Nations’ recommendations that remittance costs should not exceed three percent of total value of money being send.
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