Kenyans in the Diaspora Send Home a Record Sh26.8 Billion in June

Kenyans in the diaspora sent home a record $266.2 million (Sh26.8 billion) in the month of June, a 72 percent jump compared to the same period last year.

The increased diaspora remittances are largely attributed to lower costs of sending money and the effect of the tax pardon for Kenyans hiding cash and assets abroad.

Figures from Central Bank of Kenya (CBK) indicate diaspora inflows have hit Sh138.6 billion in the first six months of 2018 up from Sh89.2 billion in the same period last year. In May, Kenyans living abroad remitted  $253.7 million (Sh25.5 billion).

“The continued good performance is driven by new partnerships between commercial banks and international money remittance providers which has brought down the cost of money transfers. It is also explained by the uptake of new financial products,” said CBK in its weekly bulletin.

“The 12-month average inflows to June 2018 sustained an upward trend to $203.9 million ((Sh20.5 billion) from $146.6 million (Sh14.7 billion) in the 12 months to June 2017.”

Diaspora remittances have helped strengthen Kenyan shilling by 2.7 per cent against the greenback this year.

Data from the Kenya National Bureau of Statistics and CBK shows that foreign currency holdings in local banks stood at a whooping Sh514 billion at the end of May.