Remittances in 2013 rose to a historical high despite a significant
erosion of the growth rate in comparison to the previous year.
PHOTO/FILE
Remittances in 2013 rose to a historical
high despite a significant erosion of the growth rate in comparison to
the previous year.
Kenyans living abroad sent back home
Sh110.76 billion ($1.29 billion) compared to the Sh100.4 billion ($1.17
billion) sent in 2012, setting a new record. Despite this, remittances
in 2013 posted the slowest growth rate since 2010.
Last
year, diaspora inflows grew 10.2 per cent in comparison to the 31.3 per
cent growth posted in 2012. In 2011 remittances rose 38 per cent.
Dr
Joy Kiiru, a Nairobi university economist who has studied diaspora
remittances in Kenya, said the slower growth could be attributed to a
lagged response to the economic crisis that has had its grips on Europe
and the United States over the last few years.
“Kenyans
living abroad have remained largely resilient in terms of sending money
back home but I think this is the effect of the crisis. It was not felt
immediately. There was a time lapse,” said Dr Kiiru.
Following
the financial crisis in 2008-2009, many of the world’s economies
plunged into recession and are only just beginning to come up for air.
World
Bank research shows that migrants living in developed economies were
among the most affected demographic groups by the high levels of
unemployment as a result of recession. According to Dr Kiiru, the
potential positive impact of economic recovery is also unlikely to be
felt in Kenya immediately.
However, Mr Robert Bunyi, a
market analyst, said based on the broad statistics provided by Central
Bank, it is “very hard” to draw conclusions on diaspora remittance
trends.
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