Kenya Diaspora Remmitances Rise

Kenyans living abroad have increased the amount of money they send to the country by Sh3.64 billion, a 4.11 per cent growth, for the first six months of this year.

The increase has been attributed to activities in the wake of 2017 general elections, held a week ago.

Statistics from the Central Bank of Kenya (CBK) indicate that diaspora returns increased to $887.58 million (Sh92.09 billion) in the January-June period compared to $852.52 million (Sh88.45 billion) during the same period in 2016.

Data also shows that, rated on a month-on -month, cash inflows sent by Kenyans living abroad decreased by 4.10 per cent to $154.88 million (Sh16.07 billion) in June from $161.50 million (Sh16.76 billion) in May this year.

The May inflows became the new monthly record elbowing remittances reported in December 2016 which stood at $160.94 million (Sh16.70 billion).

Further, CBK data poinr out that the USA and Canada contributed to most of the cash received from Kenyans living and working abroad, standing at an average of 48.53 per cent.

Europe on the other side, accounted for 32.58 per cent of diaspora inflows while the rest of the world contributed 18.9 per cent.

Experts at Standard Investment Bank and Stanbic Bank earlier opined an increase in diaspora remmitances in the run-up to elections and a stagnation in remittance during the actual election month.

“Based on previous data, we may likely experience stagnation during the actual election period,” Standard Investment Bank head of research Francis Mwangi said.

Diaspora remittance remained Kenya's largest source of foreign exchange over the past three years, largely driven by investment in property and real estate development, Kenya Revenue Authority said.