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Diaspora remittances hit all-time high in June at Sh1bn a day

Central Bank of Kenya
Central Bank of Kenya building in Nairobi. PHOTO | SALATON NJAU | NMG 

Diaspora inflows rose by more than a fifth in June to reach an all-time high, data from the Central Bank of Kenya (CBK) shows.

The remittances rose to Sh30.4 billion ($295.3 million) in June compared to Sh25.1 billion ($243.2) in May — indicating a 21.4 per cent change.

“The remittance inflows rose to an all-time high in June 2019 amounting to $295 million compared to $243 million in May,” said the CBK.

In the 12 months to June, the inflows increased to Sh285.4 billion from Sh251.4 billion, representing a 13.6-per cent growth.

“The 12-month cumulative inflows to June 2019 increased to $2,768 million from $2,438 million in the 12 months to June 2018, reflecting a 13.6 percent growth,” said the regulator.

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The CBK data further shows most of the remittances came from North America, which accounted for 38 per cent of the total amount, while Kenyan European diaspora brought in 32 per cent. Other parts of the world brought in 30 per cent.

“North America, Europe and the rest of the World accounted for 38 percent, 32 percent and 30 percent, respectively, of the remittances in June 2019,” the CBK said.

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.

The World Bank recently reported Kenya’s Sh280 billion inflows last year was the highest compared to Sh242 billion sent to the rest of eastern Africa — comprising Uganda, Tanzania, Rwanda, Burundi, South Sudan and Ethiopia.

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