Kenyans abroad have kept cash remittances healthy with money sent home growing 9.26 per cent in August this year compared with a month earlier.
Monthly data released by the Central Bank of Kenya (CBK) shows that diaspora remittances reached $166.4 million (about Sh17.18 billion) in August compared with $152.3 million (about Sh15.72 billion) in July this year.
Year on year, the August remittances grew 13.4 per cent from the $146.7 million (about Sh15.15 billion) reported in August last year.
Diaspora remittances, which have become a key support of the Kenya shilling that is under pressure due to low export earnings, stood at $154.8 million (about Sh15.99 billion) in June.
This is a drop on 4.1 per cent compared to the $161.5 million (about Sh16.7 billion) recorded in May this year.
In April, the remittances stood at $138.6 million (about Sh14.31 billion), six per cent lower than the $147.5 million (about Sh15.23 billion) recorded in March this year.
Remittances have become the country’s biggest source of foreign exchange income, insulating the domestic economy from external shocks by ensuring the steady supply of dollars in the system.
Also, these cash transfers are a major driver for domestic consumption, hence contributing to strong economic growth.
According to a World Bank report, Kenya is among the highest recipients of remittances in Africa.