Kenya’s Diaspora remittances increased to Ksh 27.4B in May

Kenya’s Diaspora remittances recovered slightly in the month of May to 27.4 billion shillings as countries eased their COVID-19 restrictions.

The latest Central Bank of Kenya data shows the 24 percent rise in remittances was driven by increased payments from the United States, United Kingdom and South Africa.

Cumulatively diaspora remittances now stand at 299 billion shillings in 12 months to May.

In the last six months global Diaspora remittances have nose-dived as COVID-19 pandemic continue to batter the global economy.

Projections by the World Bank indicate that Diaspora inflows are expected to drop by 20 percent this year, as countries emerge from a painful virus induced shutdowns.

The bank says remittances to low and middle-income countries are to be the hardest hit, dropping by 19.7 percent to $445 billion.

Latest Diaspora remittances increased by 24 percent in the month of May, after Kenyans sent a total of 27.4 billion shillings in May from 22.1 billion shillings in the month of April.

The bank says the highest increases in inflows came from the US and South Africa, Saudi Arabia, the United Kingdom, Qatar, Australia and Switzerland in that order.

CBK data reveals that the cumulative inflows in the 12 months to May 2020 totaled 298 billion shillings against 290.3 billion in the 12 months to May 2019, reflecting a growth of 2.8 per cent.

Diaspora remittances fell by 9 per cent in April to Ksh 22 billion from Ksh 24.2 billion in March after a sluggish performance in January and February.