July’s Kenya Diaspora Remittances Fall by Sh7.4 Billion

Kenyans living and working abroad sent home $224 million (Sh23.3 billion) in the month of July, latest data published by Central Bank of Kenya (CBK) shows.

This represents a drop by $71 million (Sh7.4 billion) from $295 million (Sh30.6 billion) recorded in the previous month or a 24 percent fall.

June’s diaspora remittances were the highest in years, expanding 21 percent from $243 million (Sh24.7 billion) in May this year.

July’s inflows from diaspora pushed the 12-month cumulative remittances to Sh280 billion from Sh259 billion recorded in the same period the previous year, reflecting a 11.1 percent increase.

“The 12-month cumulative inflows to July 2019 increased to $2,778 million from $2,501 million in the 12 months to July 2018, reflecting a growth of 11.1 percent,” said CBK in its weekly bulletin.

CBK said North America contributed the largest share of July 2019 remittances (48 percent), followed by Europe (20 percent) and 31 percent from the rest of the world.

The reduced diaspora remittances in July are attributed to the end of a tax amnesty for the return of taxable assets stashed abroad.

The tax pardon announced by suspected Treasury Cabinet Secretary Henry Rotich in 2016 ended on June 30th this year.