Kenya’s diaspora remittances rose by 13.3 per cent in the nine months to September compared to the corresponding period of last year, according to the Central Bank.
Data from the Central Bank of Kenya (CBK) shows that Kenyans abroad sent home $318 million (KSh38.4 billion) in September compared to $309.8 million (KSh35.8 billion) in the corresponding period last year, an increase of 2.6 per cent.
It also increased compared to $310.5 million (Sh37.4 billion) sent in August.
The cumulative inflows for the 12 months to September totalled $4 billion (KSh484 billion) compared to $3.5 billion (KSh423 billion) in the same period in 2021, an increase of 13.3 per cent.
In the last six months, Kenya’s diaspora inflows have been dropping, attributed to high inflation in America and Europe.
The US remains the largest source of remittances into Kenya, accounting for 59 per cent of money sent back home in the month under review.
According to CBK, the USA contributed $190 million during the month under review compared to $203 million similar month last year.
The last time the country recorded an increase in remittances was in March 2022, when Kenyans living abroad sent home KSh42.05billion, a 15.5 per cent growth compared to KSh36.7billion sent in February.
“The strong remittance inflows continue to support the current account and the foreign exchange market. The US remains the largest source of remittances into Kenya, accounting for 59 per cent in September 2022,” CBK says.
While remittances help boost the country’s forex reserves but support many livelihoods.
An analysis by WorldRemit showed education, healthcare, and household needs are the biggest beneficiaries of remittances in the country.
