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What you need to know:
- During the month, CBK noted that remittances from US and South Africa decreased slightly compared to June.
- Kenyans living in North America sent home a historic high of Sh15.7 billion ($145.95 million) in May.
- Remittances in the seven months to July were 3.9 percent higher than in the same period in 2019.
Cash sent home by Kenyans living abroad dropped by Sh1.2 billion in
July compared to the previous month, easing back after three months of
increase.
Data from the Central Bank of Kenya (CBK) shows the remittances in July amounted to $277 million (Sh29.9 billion) from $288.5 million (Sh31.2 billion) sent in June.
The inflows, which are the country’s largest source of foreign
exchange, have however increased by 23.1 percent when compared to the
$225 million that was sent home in July last year.
During the month, CBK noted that remittances from US and South Africa decreased slightly compared to June.
US is the largest country in terms of the inflows’ contributions.
Kenyans living in North America sent home a historic high of Sh15.7 billion ($145.95 million) in May.
Washington-based Pew Research Centre estimates that some 90,000
Kenyans are currently living in the US, including as many as 30,000
without authorisation.
However, the country has emerged as a global Covid-19 hotspot and faces economic tensions from ongoing racial protests and the upcoming elections.
On the other hand, inflows from the United Kingdom, Saudi Arabia, Qatar and Germany increased.
“Remittance inflows remained strong in July 2020 amounting to $277 million compared to $225 million in July 2019 and $288.5 million in June 2020, in line with seasonal factors,” CBK said.
The CBK data shows the cumulative inflows in the 12 months to July totalled to $2.862 billion (Sh309 billion) compared to $2.778 billion (Sh300 billion) in the 12 months to July 2019, representing a three percent increase.
The stabilisation of remittances since the dip in April has helped narrow the current account deficit to 4.7 percent of GDP in the 12 months to July compared to 5.0 percent of GDP in the 12 months to June.
“Provisional data on balance of payments shows that the current account deficit narrowed to 4.7 percent of GDP in the 12 months to July 2020 compared to 5.0 percent of GDP in the 12 months to June. This reflected lower oil imports and improvement in tea exports and remittance receipts,” CBK said.
Despite the drop, the CBK is projecting that there will be an increase in the annual volume this year compared to 2019.
In a post- Monetary Policy Committee meeting brief held in July, CBK’s governor Patrick Njoroge said the regulator is expecting the remittance volumes to grow by at least one percent this year.
ekivuva@ke.nationmedia.com
Data from the Central Bank of Kenya (CBK) shows the remittances in July amounted to $277 million (Sh29.9 billion) from $288.5 million (Sh31.2 billion) sent in June.
During the month, CBK noted that remittances from US and South Africa decreased slightly compared to June.
US is the largest country in terms of the inflows’ contributions.
Kenyans living in North America sent home a historic high of Sh15.7 billion ($145.95 million) in May.
Economic tensions
This saw the region deepen its share of total remittances to 56.5 percent of the Sh27.78 billion ($258.15 million) sent to Kenya in May.However, the country has emerged as a global Covid-19 hotspot and faces economic tensions from ongoing racial protests and the upcoming elections.
On the other hand, inflows from the United Kingdom, Saudi Arabia, Qatar and Germany increased.
“Remittance inflows remained strong in July 2020 amounting to $277 million compared to $225 million in July 2019 and $288.5 million in June 2020, in line with seasonal factors,” CBK said.
The CBK data shows the cumulative inflows in the 12 months to July totalled to $2.862 billion (Sh309 billion) compared to $2.778 billion (Sh300 billion) in the 12 months to July 2019, representing a three percent increase.
Balance of payments
Remittances in the seven months to July were 3.9 percent higher than in the same period in 2019.The stabilisation of remittances since the dip in April has helped narrow the current account deficit to 4.7 percent of GDP in the 12 months to July compared to 5.0 percent of GDP in the 12 months to June.
“Provisional data on balance of payments shows that the current account deficit narrowed to 4.7 percent of GDP in the 12 months to July 2020 compared to 5.0 percent of GDP in the 12 months to June. This reflected lower oil imports and improvement in tea exports and remittance receipts,” CBK said.
Despite the drop, the CBK is projecting that there will be an increase in the annual volume this year compared to 2019.
In a post- Monetary Policy Committee meeting brief held in July, CBK’s governor Patrick Njoroge said the regulator is expecting the remittance volumes to grow by at least one percent this year.
Turnaround
This was a turnaround from an earlier projection by the CBK that the remittances were going to drop by 12.3 percent, which was made in the early days of the Covid crisis in Kenya.ekivuva@ke.nationmedia.com
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