Kenyans abroad sent home Ksh.34.4 billion last month
Kenyans abroad sent home Ksh.34.4 billion ($312.9 million) last month as the diaspora remittances grew by 14.2 per cent from Ksh.30.2 billion ($274.1 million) in August 2020.
The improved remittances continued to show the growing importance of Kenya’s diaspora in supporting the local economy with the bulk of remitted funds going to households.
While the remittances were down month on month from July, cumulative flows in 12 months have risen by 19.2 per cent to Ksh.382.9 billion ($3.481 billion) from Ksh.321.3 billion ($2.921 billion) previously.
The United States remains the key remittances source but its contribution in August fell to less than half of all the inflows at 46.8 per cent.
So far in 2021, Kenyans abroad have sent home Ksh.231 billion ($2.1 billion) which averages to about Ksh.28.9 billion ($263 million) every month setting the stage for a new remittance record at the end of the year.
The highest inflow for the remittances was posted in July when the flows stood at Ksh.37 billion ($336.7 million) according to data from the Central Bank of Kenya (CBK).
The diaspora dollars remain integral to not just local households but are also a key stream of funding the government’s foreign exchange demands which include the financing of CBK’s usable foreign currency reserve.