Diaspora remittances jump to Ksh 190b in first half of 2021

DIASPORA REMITTANCES

Diaspora remittance increased for the six months to June this year to 190 billion shillings defying harsh economic times and Covid-19.

Latest data by the Central bank of Kenya shows that remittances from Europe jumped by the highest margins at 41.4 percent followed by North America which increased by 38 percent.

This is the highest jump since 2018 setting the stage for record remittances for 2021.

In the last six years, diaspora remittances have become Kenya’s largest source of foreign exchange since 2015 when they overtook earnings from horticulture and Tea.

This has made Kenya the largest recipient of Diaspora remittance in the region and the third biggest in Sub-Saharan Africa behind Nigeria and South Africa.

The United Nations projects diaspora remittances to become the largest source of foreign direct investment in the developing world within this decade.

Latest data from the Central bank of Kenya show that in the first half of 2021, Kenyans living abroad sent a total of 190 billion shillings defying economic times brought about by Covid-19.

This is more than 30 billion shillings more than the 158 billion shillings sent in a corresponding period in 2020.

Money from Canada, the United States and Mexico hit Ksh 115.7 billion accounting for 61 percent of total remittances up from 53.1 percent in the first half of 2020.

Kenyans living in Europe sent a total of Sh38.6 billion equivalent to 20.4 percent of all inflows while the rest of the world brought in Ksh 35.1 billion.

The United States continues to be the largest source of remittances into Kenya, accounting for 58.8 percent of remittances in June 2021 according to the CBK report.

  

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