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Remittances from Kenyan citizens living abroad in other African countries have seen a significant increase of 42 per cent in the first seven months of this year.
The growth is the fastest among all continents, with North America accounting for 60 per cent of the cash spent on consumption. Kenyans relocate abroad primarily for better employment and educational prospects. In this regard, Uganda and Zambia have gained popularity among Kenyan migrants, as evidenced by an increase in the amount of money transferred back to Kenya.
Inflation in the US dropped to 3.2 per cent in July, which is a significant decrease from the average of 8% in the US and 7.9% in the UK witnessed in the recent past. Despite earning $4.3 billion in remittances, which is the largest source of foreign exchange inflows, Kenya's economy still fell by 1.6 per cent or $22 million. The decline was mainly due to surging international inflation rates and rising geopolitical tensions, forcing the US authorities to augment interest rates.
This has resulted in a preference for government securities as investment assets.
However, there was a significant drop in inflows from Middle Eastern countries, with Bahrain experiencing an 80 per cent reduction from $5.6 million to $1.1 million this year. Qatar also posted a 38.4 per cent fall to $31.9 million, and inflows from Oman declined by 68 per cent. South Africa also posted a significant drop, halving to $6.3 million from $13.5 million in the same period last year.
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This story is off a little. If that figure represents 1.6% of Kenya's economy, that economy has been shrinking dramatically to the extent that diasporans are sending back more than double what the economy is worth. Moreover remittances are not earnings-if I gift my nephew $20, he didn't earn that. Lastly I'm not so sure the writer has a clear understanding of the Fed and that it works autonomously off the federal government with regards to money. The truly unfair part for African countries is that if you borrowed $1 billion before COVID, 5 years later your money has declined by 40% in value so you are putting back almost 1.5x as much effort to pay back the same amount. Meanwhile if the US government so desires, it can print that billion, buy goods and services and suffer no real consequences because the dollar is a reserve currency. The system is rigged and it doesn't help that Kenyan leaders are greedy, corrupt and amoral to the core.
I guess that is what is called taking advantage of opportunities.Ofcourse there are foreigners in Kenya who make a killing and send their proceeds to their mother country.It's all fair game...
The 'fear' I have is unpredictable nature of african alliances.We have all read about South Africans complaining that "african foreigners" were taking their jobs.Worse these unfriendly South Africans even attacked and destroyed property,and lives of the "foreign Africans" This is a common occurance in this Rainbow Nation.So make hay while the sunshines.My point here that should bring to light the importance of United States of the motherland.Yes,Africa is the mother of mankind.On that score,the south africans or their copycats will think twice before they call other africans"job grabbing foreigners".My two cents.