Kenyans Abroad Defy Trends, Send an Extra Sh2.3 Billion Home
In October, Kenyans residing and working abroad sent an additional Sh2.3 billion back home up from the Sh51.89 billion sent in September.
The Central Bank of Kenya's latest data reveals that remittance inflows in October 2022 reached $332.6 million, marking a 6.9% increase from the $355.6 million received in October 2021. The easing inflationary pressures in major economies, such as the United States, could be a contributing factor to the rise in remittances. Another possible explanation is the weakening value of the shilling, as predicted by Western Union's Global Money Transfer Index, which suggests that migrant workers are capitalizing on this trend to send larger sums of money home.
There was a decrease in remittance inflow for September, which fell to $340.4 million following July's peak of $378.1 million and August's peak of $354.3 million. The high remittance amount seen in July 2023 didn't have much effect on the depreciation of the nation's foreign exchange reserves which are at $6,833 million or roughly 3 trillion Kenyan shillings. The total value of Kenya's foreign reserves has dwindled to an all-time low of $6,785 million (Sh1.03 trillion), equal to 3.6 months of import coverage.
This falls short of the mandated minimum of four months of import cover, exposing the nation to potential economic instability. The US towers above others in remittances to Kenya, with a 54% stake in total remittances as of October 2023. Nevertheless, Saudi Arabia has recently established itself as a prominent donor with a considerable upsurge in remittances sent to Kenya.
Comments
They are not doing it to…
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They are not doing it to please the government, they are doing it to save their kin who've been rendered destitute by the neglect of successive governments.
Giving people free stuff and…
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In reply to They are not doing it to… by Mutuura mwangi (not verified)
Giving people free stuff and money is not the solution to the current dire situation and in Kenya! The more you give the worse the situation gets. Unfortunately those who are receiving from the diaspora must learn how to provide for their needs! They used to fish for themselves before the relative went abroad, but they stopped working because they feel it is their time to be fed using the dollar! I have cut off every one back home, and they all seem to be making it alright!
@ Biza...i feel you...We the…
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@ Biza...i feel you...We the diaspora people have created this monster to the extent our relatives can't survive without us. Why can't we start a sustainable business for them rather than handing them money every month. Mimi kwanza yenye imenibamba is the funeral collection we do here in diaspora for a dead relative in Kenya. I think this is the biggest scam waiting to explode. Funeral money has turned into investment. Who needs $20k to bury a relative dead in Kenya
There are all sorts of scums…
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In reply to @ Biza...i feel you...We the… by fanta (not verified)
There are all sorts of scums carried out those in Kenya as well as by those residing abroad @fanta. A neighbor of mine lied to me that they were burying their uncle last month while the same uncle had died 3 years ago. When I inquired further, he turned around to tell me he was talking about his youngest uncle, but the guy he was talking about is still alive!
He wanted me to send him Kshs 100K. Fake deaths and made up burials are a common phenomena back in Kenya. Beware and don’t put your emotions into any sad news coming from Kenya; mostly it is a big lie!
Well, you have talked about opening a business for them folks; right? In most cases that does not work either. What folks back home are doing is telling you they want a ka-small Kiosk business to sell salt, sundar, rice, etc to support themselves. Little did you know that ka-bysiness will never move from the ground level once you spend a lot of money to open it. It never grows to sustain itself! Utafugua hio nduka lakini it will turn out to be a bottomless black hole(pit) that eats your dollars because of poor management.
Your idea to start something is a good one (give them a fishing rod so they cat fish for themselves) but in actual fact, getting that business to be self sustaining can be a huge nightmare! Maybe your kins are better than mine is running stuff! I am done my fren!
@fanta - wow what a name -…
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In reply to @ Biza...i feel you...We the… by fanta (not verified)
@fanta - wow what a name - fake or real?? The monster we have created back home is too hot to handle! It is leaving most of us in the diaspora near broke or looking for a 2nd, 3rd and 4th job to keep that monster happy and going! But the monster is never satisfied!
Now, the relatives are even the worst to deal with because they will lie to you without mercy! I do agree with those who suggest we stop sending money home all together to force these people to look for other alternatives to earn a living! Necessity is the pure mother of invention! It is until the people back home go seriously hungry that they will realize farming is a good thing! This begging mentality needs to be stopped!
BTW @fanta - I say that you want a relationship with @Kiprono some place else! The guy is a man of many firsts! He is a creator and a stickler to his cause! He means what he says and gets what he wants! He should have told you he owns a huge farm in Kitale! Can you drive Combine Harvesters, ploughing tractors and Lories?? He owns all the cool farm toys! Good luck!
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