Remittances by Kenyans living abroad rose 50 per cent in the
first four months of the year compared to a similar period in 2017,
cementing the inflows’ position as the leading source of foreign
exchange in the
country.
country.
Latest Central Bank of Kenya
(CBK) data show the cumulative inflows in the four months to April stood
at Sh86.7 billion ($858.6 million), compared to Sh57.7 billion ($571.2
million) in a similar period in 2017, with the increase mainly backed by
huge growth in the dominant North American remittances.
The
highest amount of inflow this year—which is also an all-time high—was
recorded in March at Sh22.4 billion ($222.2 million) with April
recording a slight decline to Sh21.9 billion ($217.1 million).
The
higher inflows have helped the shilling’s strong performance against
the dollar this year, where it has appreciated by 2.2 per cent.
Kenyans abroad are also increasingly making portfolio investments in the local capital markets.
“Remittance
inflows remained resilient despite a 2.3 per cent decline in April
2018. The improved performance reflects increased uptake of financial
products by the Diaspora and new partnerships between commercial banks
and international money remittance providers,” said CBK in its latest
weekly bulletin.
Cumulative inflows
CBK
added that the 12-month cumulative inflows increased by 28.7 per cent
to Sh225.2 billion ($2.23 billion) in April compared to Sh175.7 billion
($1.74 billion) recorded in April 2017.
North
America—mainly the US—continued to contribute the largest share of
inflows, the CBK data shows, at Sh47.4 billion in the four months to
April, which represents a 72 per cent increase on the Sh27.5 billion
remitted in the corresponding period in 2017.
Remittances
from Europe rose 46 per cent to Sh27.3 billion, while cash sent home
from the rest of the world recorded a smaller growth of 4.3 per cent to
Sh12 billion in the four-month period.
Latest CBK data
on receipts from other major sources of foreign exchange show that in
the 12 months to March 2018, tea inflows rose by 18.2 per cent to
Sh148.8 billion ($1.47 billion) and horticulture by 10.5 per cent to
Sh90 billion.
Tourism and coffee inflows on the other
hand contracted by one per cent to Sh90 billion and 6.9 per cent to
Sh21.6 billion respectively in the 12 months.
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