Kenya’s Diaspora Remittances Hit USD 312.9 mn in August

CBK expects the remittance inflows to support the weakening shilling that has hit record lows against the US dollar.

Kenyans living in the diaspora sent home a record $312.9 million during the month of August, a 14 per cent rise compared to the corresponding month in 2020 when the inflows stood at $274.1 million.

However, according to data from the Central Bank of Kenya (CBK), remittance inflows declined by 7.1 per cent compared to USD 336.7 million in July, in line with seasonal factors.

The cumulative inflows for the 12 months to August 2021 totalled USD 3,481 million compared to USD 2,921 million in the same period in 2020, a 19.2 per cent increase. 

“The United States continues to be the largest source of remittances into Kenya, accounting for 46.8 per cent in August 2021,” said CBK. 

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

Remittance to Africa Projected to Decrease in 2021

In Africa, remittances are expected to decrease by 5.4 per cent from $44 billion in 2020 to a projected total of $41 billion in 2021, due to the effects of the Covid-19 pandemic, according to findings of Continental Migration Report 2021.

The report titled, “African regional review of the implementation of the Global Compact for Safe, Orderly and Regular Migration,” was produced by the Economic Commission for Africa (ECA) in partnership with the African Union Commission (AUC) recommends that governments across the world should take effective action to facilitate and boost remittances in view of supporting the fight against COVID-19 and ultimately building a more sustainable post-pandemic world.