Kenya’s diaspora remittances grows by 21.9pc in Q3 2021

NAIROBI, Kenya, Jan 3 -Kenya’s diaspora remittances grew by 21.9 percent in the third quarter of 2021 to Sh106.9 billion, the National Treasury has revealed highlighting increased support of Kenyan families by their relatives living abroad.

The date from a report issued by the Kenya National Bureau of Statitics showed that diaspora inflows in the first and second quarter stood at Sh96.06billion and 101.3 billion respectively.

Over the same period, net financial inflows increased more than four times to Sh175 billion from 39.5 billion mainly driven by investment flows.

The country recorded remittance inflows of Sh36 billion in November

According to the Ministry of Foreign Affairs, Diaspora remittances from an estimated 3-4 million Kenyans living abroad as migrants, has over the years grown to be a major contributor to the country’s Growth Domestic Product.

Remittances now rival other major sources of Forex such as tourism, tea, and horticultural exports.

In its Balance of Payment (BOP) and International Trade report, KNBS further revealed that total value of imports reported in Q3 amounted to Sh541.9 billion compared to Sh420.8 billion in the similar quarter of 2020.

China accounted for the highest import earnings at 31.6 per cent with the total import expenditure in Q3 rising by 28.8 percent.

“The rise in import earnings  was occasioned by increase in imports of gas oil and semi-finished products of iron and non-alloy steel from India, and crude palm oil from Malaysia,” the report noted.

At the same time, domestic exports were valued at Sh160.2 billion representing a 10.6 percentage increase from Q3 2020.

“The total value of export earnings in Q3 2021 improved by 7.5 percent with the largest portion of total revenue from exports being from the  Africa continent, highly boosted by earnings from Ethiopia which more than doubled, and Tanzania which rose by 56.2 per cent, during the period under review,” KNBS said.