Kenyans in Europe send home a record Sh4.7 billion

Remittances from the US, the top source of diaspora inflows, dropped slightly in May by 4.7 per cent to $68.7 million (Sh6.9 billion), according to data collated by the Central Bank of Kenya.

Kenyans living abroad sent home Sh14.8 billion (by current exchange rate) up from $143.5 (Sh14.5 billion) in April, a 2.3 per cent growth. The US remained the top remittance inflow source where $68.7 million (Sh6.9 billion) was sent home in May, despite a 4.7 per cent drop from April’s $72.1 million (Sh7.3 billion). It accounted for 46.8 per cent of total inflows.

Money sent from Europe, the second highest inflow source, however, increased by 31.8 per cent to $46.6 million (Sh4.7 billion) from $40.6 million (Sh4.1 billion) in April.

The data released yesterday shows inflows from the rest of the world also increased by two per cent to $31.4 million (Sh3.2 billion) from $30.8 million (Sh3.1 billion) in April, and $28.4 million (Sh2.9 billion) in March. It accounted for 21.4 per cent of total inflows in May.

“The sustained upward trend in part reflects the entry of additional money remittance providers into the market,” the CBK said.

Total inflows in January were $137.5 million (Sh13.9 billion), February $136.9 million (Sh13.8billion) while remittance in March stood at $141.1 million (Sh14.3 billion).

Total remittance between January and May stands at $705.9 million (Sh71.4 billion).

Cumulative inflows in the 12 months to May increased by 11.1 per cent to $1.64 billion (Sh165.9billion) from $1.47 billion (Sh148.7 billion) in the year to May 2015, CBK data shows.

“The 12-month average flow to May 2016, therefore, increased to $136.3 million (Sh13.8 billion) from $122.7 million (Sh12.4 billion), 12-month average flow to May 2015,” the CBK said.

Diaspora remittances have continued to grow year-on–year bringing in a significant amount of foreign exchange to the country, making it among top earners alongside tea, horticulture exports and tourism.

The steady rise in remittance value is attributed to many factors including growing interest among Kenyans in the diaspora to invest in the local capital market, huge interest in government securities and a liberalised money transfer service sector which has brought down the transfer charges.

The expanding mobile money platform in the country has also been termed a key element in delivering these money, as it has increased convenience.The country’s booming property market has also pushed up money inflows in recent years with a major boost from the recent launch of the Real Estate Investment Trust market..

SOURCE:THE STAR