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Remittances from Kenyan expats abroad increased by 9.9% to Sh49.32 billion last month, pushing up the country’s foreign current account reserves. The latest Central Bank of Kenya (CBK) data shows that money sent home by Kenyan Diaspora was Sh4.5 billion in June, up from Sh44.83 billion in April
Remittances from Kenyan expats abroad increased by 9.9% to Sh49.32 billion last month, pushing up the country’s foreign current account reserves. The latest Central Bank of Kenya (CBK) data shows that money sent home by Kenyan Diaspora was Sh4.5 billion in June, up from Sh44.83 billion in April.
The US remains the largest source of remittances to Kenya, accounting for 54 percent in May 2023. Inflows helped strengthen the country’s usable foreign exchange reserve to Sh1.04 trillion as of June 15, enough to cover 4.11 months of imports.
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This meets the CBK’s statutory requirement to endeavor to maintain at least 4 months’ buffer for imports. Analysts maintain that increase in the remittances bodes well for the East African country since it is embarking on a massive development effort. Kenya is now earning more foreign exchange from diaspora remittances than each of its major exports – coffee, tea, and horticulture – in spite of persistent criticism of a poor diaspora policy.
