Diaspora Remittances Hit Record High in July at Ksh36.9B – Kenyan Business Feed

Kenyans abroad sent home a record Kshs. 36.7 billion ($336.7 million) during the month of July, a 21.6% rise compared to the corresponding month last year when the inflows stood at Kshs. 30.2 billion ($277.0 million).

According to data from the Central Bank of Kenya (CBK), cumulative inflows in one year to July 2021 also registered a 20.3% jump to Kshs. 375.2 billion ($3.442 billion) from Kshs. 312 billion ($2.862 billion) in 2020.

“The United States continues to be the largest source of remittances into Kenya, accounting for 58.3 percent of remittances in July 2021,” said CBK.

Despite a slight drop in February and June, remittances have risen steady since April last year when inflows faltered as a result of COVID-19 containment measures in key source markets.

This to represent a 21.6 per cent in the dollar inflows from a lower Ksh.30.4 billion ($277 million) on the same month last year and breaking the previous monthly high in the inflows set in May this year.

Cumulative remittances across 12 months now stand at Ksh.372.6 billion ($3.4 billion) in contrast to the previous Ksh.317.8 billion ($2.9 billion) or an equivalent 20.3 per cent rise in dollar inflows.

The United States has continued to lead the way as Kenya’s largest source of diaspora foreign exchange, covering 58.3 per cent of the July remittances.

The continued growth of the diaspora remittances is expected to offset the country’s declining foreign exchange earning potential as sectors such as tourism continue to witness turbulence from the COVID-19 crisis.

The remittances are not only a key source of income for households locally but are also government as the Central Bank of Kenya (CBK) stacks up the dollars to the official foreign exchange reserves vault.

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