Kenyans in the Diaspora Send Home Sh215 Billion in 9 Months

Kenyans living abroad sent home about Sh22.1 billion in September as diaspora remittances stagnated following the end of Treasury’s tax amnesty on June 30th.

This translates to a flat growth from about Sh22 billion recorded the previous month.

The September inflows put the nine-month cumulative diaspora remittances at Sh214.5 billion, a boost to the country’s foreign exchange reserves.

The performance continued to fall behind that of June which coincided with the expiry of the deadline for the return of taxable money stashed abroad.

In June, Kenyans abroad sent in a record $295 million (Sh30.3 billion), representing a 21 percent growth from $243 million (Sh24.7 billion) recorded in May.

After the expiry of the tax pardon, monthly remittances in July, August, and September averaged $217.8 million compared to $261.3 million in the period between April and June.

In July, diaspora inflows stood at $224 million (Sh23.3 billion), a 24 percent fall from June’s remittances.

Data from the Central Bank of Kenya (CBK) shows that Kenyans in North America contribute the largest share of diaspora remittances (38 percent) followed by Europe (32 percent) and 30 percent from the rest of the world.

Since 2015, remittances from Kenyans abroad have remained the country's top foreign exchange income earner ahead of earnings from tea and horticulture exports as well as tourism.