Remittances rise 23.2 per cent despite slowing western economies

Central Bank of Kenya headquarters in Nairobi. CBK on Tuesday said inflows stood at Sh9.7 billion ($112.9 million) up from last year’s Sh7.9 billion ($91.6 million) in the period to October. Photo/FILE  NATION MEDIA GROUP

By NEVILLE OTUKI

In Summary

• The Central Bank of Kenya on Tuesday said the inflows stood at Sh9.7 billion ($112.9 million) up from last year’s Sh7.9 billion ($91.6 million) in the period to October
• The remittances grew 5.1 per cent month on month from September’s Sh9.3 billion ($107.5 million) this year

Diaspora remittances from Kenyans living abroad have risen 23.2 per cent in the year to October compared to a similar period last year.

The Central Bank of Kenya (CBK) Tuesday said the inflows stood at Sh9.7 billion ($112.9 million) up from last year’s Sh7.9 billion ($91.6 million) in the period to October.

“The strong performance underscores the resilience of remittances during the review period in spite of the sluggish economic performance in source regions, CBK said in a statement.

Additionally, the remittances grew 5.1 per cent month on month from September’s Sh9.3 billion ($107.5 million) this year.

Kenyans abroad have been sending money to help their relatives at home, invest in real estate projects among others investments.

The deepening of mobile money transfer services along with convenient international money transfer platforms such as Western Union and PayPal has over the years facilitated increased money remittances.

Data from the central lender shows that the average remittance inflows in the 12 months to October 2013 rose 11.7 to Sh9.1 billion ($105.6 million) from Sh8.1 billion (94.5 million) in the review period last year.

Kenyans abroad have since remitted a total of Sh86.5 billion ($1 billion) from January to October this year.

North America accounted for 45 per cent of total remittances (Sh38.9 billion) while Europe and the rest of the world at28 per cent and 27 per cent respectively, manifest that north American states hosts largest number of Kenyans with gainful economic activities compared to other regions.

Remittances are a major source of foreign exchange for Kenya alongside tea, horticulture and tourism.

CBK monitors remittance inflows every month through channels such as banks and international remittance service providers in the country.