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Remittances by Kenyans living abroad have risen by 4.1 per cent in the first half of the year to $887.6 million (Sh91.6 billion) in comparison to a similar period last year, helping strengthen the shilling against major global currencies.
Latest data from the Central Bank of Kenya (CBK) shows that the Kenyans in diaspora sent more money home in the second quarter of 2017 compared to the first, peaking at an all-time monthly high of $161.5 million (Sh16.6 billion) in May.
In a briefing in July, CBK Governor Patrick Njoroge said that the higher diaspora remittances, tourism earnings and agriculture exports will help Kenya narrow its current account deficit by the end of the year, in spite of rising imports.
“Our remittances are quite resilient, as are inflows from tea, horticulture and tourism,” said Dr Njoroge.
Diaspora remittances have now become Kenya's single largest source of foreign exchange, edging out tea, horticulture and tourism.
However, the year-on-year growth in remittances has declined this year compared to 2016.
Last year's remittances stood at $852.5 million in the six months to June, having risen by 13 per cent from the $753.7 million sent home in a similar period in 2015.
The healthy inflows have shielded the shilling this year, giving the CBK enough firepower to counter exchange rate volatility through sale of dollars into the market. The shilling has weakened by 0.5 per cent to the dollar since the beginning of the year.
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Mtalli, I think you have apoint there.Granted Diaspora can spend their hard earned money the way they want, I believe some"rednecks" and their powerful supporters in the government may not like it.Thus may find away to even the"loss".I can see them saying that if diaspora sends 80 billion in a year, lets cut 85 billion for funds a located to various programs in Kenya.
I can only hope that these funds are going to good use,such are creating more wealth before foreign aid dries out.
In fact there is a classical arguement that foreign aid retard development in third world countries.The thinking is that " let them toughen out on their own".
Maxiley, good point. The good thing is that, Kenyans are now free to fight back. They can say what they want without retaliation and what is going on the world economy. As you know, we have a new crop of Kenyans who are hard working and smart. They will see what countries want to keep us down and adjust.
Earlier on, i had mentioned some of the things that can happen as cutting down on visas etc. It happened today with all Africans coming to a conference in US were refused visas. What is that? Kenya is a good friend of the US and I would hate to see or these projects for infrastructure, housing and trade go to China. My other concern is for these folks to turn to these diasporan contributions as the new cow to milk. We want to know why tourism has been left to foreigners to run! They have charter planes that transport tourist when they arrive in Kenya, not to mention they have already paid for these safari packages in their country of origins. So what Kenya gets from tourism is the little money from curio shops (most of them also owned by foreigners) and bus boys. 75-80 percent of the income from tourism is kept by foreigners.
Sasa nini, the free market is a tricky thing.I agree with you that most tourists make plans,and pay for those plans in their countries before coming to Kenya,and thus reducing what we could have gotten(100%).See these tourists,like you and me want the most bang for their bucks, that is in addition to convenience.Tourism industry in Kenya has to figure out away to attract the whole 100%,if possible.It comes down to which way is cheaper.And yes Iam aware that they are some tourists who dont care about the $$$,they could spend without limits.But what percentage are those? Actually what I wanted to say is that, we should encourage africans to tour Kenya,especially Kenyans themselves. See Foreign tourism is very much controlled by the political,and social stability/safety in the country they intend to visit.But if we encourage Kenyans to tour Kenya, you will not be hindered by this obstacle that much.The revenue may not be much in the beginning but eventually It would get high.
Touring around is not so much into african culture.But we should make it so.
This is a big fat lie. Fake news to get us to keep sending money.
Watu Wa USA nyinyi fanyeni madoubles na matripples mtume zote hapo nchi iendelee.With Uhuru Kenyatta n William Ruto upto 2032 u can b sure Kenya is headin to greater heights but elect the lord of poverty stricken Kenya will b like Haiti
This is the reason why the US is knocking down some the things like aid and immigration to Kenya and increasing the fees for Visa. Why has it become sooooo important to report what the remittances are for each quarter? When is the last time anybody heard anything report for what the country makes in Tourism, agriculture atc?