Remittances to Kenya Decline by KSh1.2 Billion in July: CBK

Remittance inflows continue to provide a stable source of foreign exchange for Kenya and key support for many households

Dr Patrick Njoroge, CBK Governor Displaying some of the new currency Notes

Kenyans in diaspora sent home $277 million (KSh29.9 billion) in July, however, this was a Ksh 1.2 billion decline.

In June they sent $288.5 million (KSh31.2 billion).

“Remittance inflows remained strong in July 2020 amounting to $277 million compared to $225 million in July 2019 and $288.5 million in June 2020, in line with seasonal factors,” Central Bank of Kenya said in its Weekly Bulletin.

Cumulative inflows in the 12 months to July totalled to $2.862 billion (KSh309 billion) compared to $2.778 billion (KSh300 billion) in the 12 months to July 2019, representing a three percent increase.

Remittances to Kenya Decline by KSh1.2 Billion in July

During the period, inflows from the United Kingdom, Saudi Arabia, Qatar, and Germany registered growth. However, the US and South Africa’s inflows declined marginally compared to June.

The CBK also said its usable Forex Reserves had declined by USD458 million from USD9,421 million at 23 July 2020 to USD8,963 million on 27 August 2020. 

The Kenya Shilling depreciated by 0.2 percent against the US Dollar to close the week at Kshs 108.2, from Kshs 108.0, recorded the previous week, due to end-month importer dollar demand amidst lackluster inflows.

“We expect USD to strengthen our outlook of global growth meltdown. Furthermore, the unresolved US-China trade spat signals a risk-on sentiment on the world reserve currency,” Genghis Capital in its Cross-Asset Weekly Strategy dated August 31.