Kenyans living in diaspora at a past meeting. Kenyans abroad sent home Sh214.40 billion in the first nine months of the year, marking a 4.34 percent growth over Sh205.48 billion remitted over the same period a year earlier. FILE PHOTO | NMG
Kenyans abroad sent home Sh214.40 billion in the first nine
months of the year, marking a 4.34 percent growth over Sh205.48 billion
remitted over the same period a year earlier.
Central
Bank of Kenya (CBK) data shows some Sh22.11 billion was wired home in
September, the third lowest this year after February (Sh20.50 billion)
and August (Sh22.07 billion).
A record Sh30.39 billion
($295 million) was remitted by the diaspora in June, which marked the
end of a two-year blanket tax amnesty for Kenyans wishing to declare and
repatriate offshore wealth. Applications worth more than Sh800 billion
in cash and other assets were made during the exercise, the Kenya
Revenue Authority (KRA) said on October 1.
The inflows
remain stronger this year than they were in 2018 year-to-date according
to CBK data that only captures cash through formal channels.
“The
cumulative inflows in the 12-months to September 2019 increased to
$2,786 million (nearly Sh286.96 billion) compared to $2,579 million
(nearly Sh265.64 billion) in September 2018, reflecting a growth of
eight percent,” CBK wrote in this week’s bulletin.
“North America, Europe and the rest of the world accounted for
51 percent, 19 percent and 30 percent, respectively, of the total
remittances in September.”
Analysts at Cytonn
Investments attributed the stronger inflows to increased uptake of
financial products by the diaspora as well as new partnerships between
international money remittance providers and local commercial banks,
which has enhanced convenience.
Increased dollar
inflows from citizens in foreign countries has partly helped ease
pressure on the shilling this year by supporting the supply side of the
dollars against demand by importers shipping in goods and companies
paying expatriates and dividends to foreigners.
A
parliamentary unit, however, warned earlier in the year that
over-reliance on “hot money flows” such as remittances as the main
source for foreign exchange reserves poses a major risk to shilling
going forward.
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