Kenyans abroad sent home Ksh.242 billion in six months to June

Kenyans living and working abroad sent home Ksh.242 billion ($2.045 billion) in the first six months of the year to June.

This represents a 16.9 per cent growth in diaspora remittances in a similar period in 2021 when the inflows totalled to Ksh.207 billion ($1.75 billion).

New data from the Central Bank of Kenya (CBK) shows diaspora remittances stood at Ksh.38.6 billion ($326.1 million) in June, representing a 6.6 per cent increase from Ksh.36.2 billion ($305.9 million) in June 2021.

The strengthened inflows have continued to support Kenya’s current account and stability of the exchange rate alongside improved export earnings this year.

In June, the United States remained the largest source of remittances into Kenya by accounting for 59 per cent of the inflows.

In the January to June period the diaspora remittances average to Ksh.40.3 billion a month or Ksh.1.3 billion per day.

Diaspora remittances are Kenya’s second largest foreign exchange earner after foreign direct investments (FDI).

In 2021, Kenyans abroad sent home Ksh.438 billion ($3.7 billion) representing the highest inflow for the remittances over a calendar year.

A survey by the Central Bank of Kenya (CBK), published earlier this year, shows the bulk of the remittances are channelled towards the purchase of food and settling medical expenses.

Other top uses to the diaspora dollars include paying school fees, rent and household utilities.

Meanwhile, mobile money operators and money transfer companies are the most preffered channels of remitting the diaspora cash.

Ksh.118.28=$1