The January inflows hit $245 million (Sh24.55 billion) compared with $209 million (Sh20.94 billion) last year, according to the Central Bank of Kenya (CBK) data.
The monthly diaspora remittances were the third highest in history after May ($254 million) and June 2018 ($266 million) when the inflows were largely thought to have been driven by a tax pardon for assets stashed abroad.
Diaspora remittances rose 17.22 per cent in the first month of the year compared to 2018, according to fresh official statistics released yesterday, partly driven by back-to-school expenses.
The January inflows hit $245 million (Sh24.55 billion) compared with $209 million (Sh20.94 billion) last year, according to the Central Bank of Kenya (CBK) data.
The monthly diaspora remittances were the third highest in history after May ($254 million) and June 2018 ($266 million) when the inflows were largely thought to have been driven by a tax pardon for assets stashed abroad.
“It (January) is a high season for back-to-school payments and other bills, and that is one of the reasons for the upswing in remittances together with increased and cost-friendly channels of remitting the funds,” said Mercyline Kyalo, a senior research analyst at Kingdom Securities.
About three-quarters of Kenya’s diaspora remittances are conservatively estimated to go to charities and family support obligations such as medical bills, food and school fees.
Financial services firms such as commercial banks and fund managers have in recent years also developed savings and investment products targeted at the diaspora community who have historically favoured real estate.
“In terms of investments, we have seen many companies going abroad and telling people they can invest here,” Ms Kyalo said.
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