Business

Diaspora Kenyans sent home Sh913 million more in May compared to April

Kenyan shilling notes are displayed during a news conference at the Central Bank in Nairobi, on June 3, 2019. (Photo: Baz Ratner/Reuters)

By Alfred Onyango | Thursday, June 20, 2024

Cumulative inflows for the 12 months to May 2024 totalled $4,509 million (Sh580 billion), compared to $3,997 million (Sh514.2 billion) in a similar period in 2023, an increase of 12.8 per cent.

Latest monthly data by the Central Bank of Kenya (CBK) show remittance inflows for the month totalled $404.4 million (Sh52 billion), a 1.8 per cent increase from the month of April when inflows totalled $397.3 million (Sh51.1 billion).

The record is also higher by about 14.9 per cent compared to the same period last year when inflows reached $352.1 million (Sh45.3 billion).

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Cumulative inflows for the 12 months to May 2024 totalled $4,509 million (Sh580 billion), compared to $3,997 million (Sh514.2 billion) in a similar period in 2023, an increase of 12.8 per cent.

"The US remained the largest source of remittances to Kenya, accounting for 48 per cent in May 2024," the CBK says in its weekly bulletin released on Friday last week.

Other top sources of remittances were Canada, the United Kingdom, Germany, Saudi Arabia, the United Arab Emirates, and Australia.

Kenya ranking

According to WorldRemit research, Kenya is one of the top recipients of remittances on the continent, with the country's primary uses being for household needs, healthcare and education.

Kenyans have also been investing more in the capital market and real estate in recent years, with the US, Canada, and the UK leading the way.

The inflows have also continued to support the Kenyan shilling which hit a record low of Sh161 to the dollar sometime in January, as the country experienced a dollar shortage on the back of high demand by importers during the period.

It has however gained and remained stable against major international and regional currencies during the week ending June 13.

The apex bank quoted the Shilling at 128.65 on Friday.

The inflows are also a key support for the country's foreign exchange reserves which remained adequate at $7,012 million (Sh902 billion), equivalent to 3.7 months of import cover.

Although the level falls short of the statutory requirement to maintain at least four months of import cover at any given time, CBK maintained a brave face saying the record meets the regulatory requirement to endeavour to maintain at least four months.

The CBK wants to keep the forex reserves at no less than $7.41 billion, or four months of import cover, which would indicate the country's long-term economic buoyancy.