Kenya’s Diaspora Remittances Rise 12% to Ksh 31.1B in June

Remittances in Kenya are the biggest source of foreign exchange, ahead of tourism, tea, coffee, and horticulture exports.

Kenya’s diaspora remittances inflows rose in June 2020 to $288.5 million (KSh31.1 billion) from $258.2 million (KSh27.8 billion) in May as most countries in the world eased coronavirus restrictions.

The Central Bank of Kenya data said this was 12 percent rise in remittances driven by increased payments from the United States, Saudi Arabia, and South Africa.

“The cumulative inflows in the 12 months to June totaled USD 2,809 million compared to USD 2,768 million in the 12 months to June 2019, reflecting a growth of 1.5 percent,” said the CBK in its Weekly Bulletin dated 24 July.

Kenya’s Diaspora Remittances Rise 12% to Ksh 31.1B in June

Diaspora remittances are part of Kenya’s largest foreign exchange earner, largely contributing to the country’s forex reserves aimed at stabilising the shilling.

The Central Bank of Kenya conducts a survey on remittance inflows every month through formal channels that include commercial banks and other authorised international remittances service providers in Kenya.

During the week, Dr Patrick Njoroge, CBK Governor said “Kenya flower exports are rebounding nicely, e.g., volume in July 1-19 was 80 percent of that in all of July 2019.”

Clement Tulezi, chief executive of the Kenya Flower Council told Reuters Africa that demand for Kenya’s flowers has recovered to around 85 percent of pre-coronavirus levels.

“We are better than we were two months ago, demand is almost at 85 percent from our major markets in Europe and elsewhere, we are seeing orders.”