June diaspora remittances up 17pc

By: EDWIN OKOTH

Kenyans in the diaspora sent home Sh13.6 billion in June, a 17.1 per cent increase from the Sh11.6 billion that was remitted in a similar period last year, according to new Central Bank data released on Tuesday.

Last month, remittances from Kenyans living abroad hit Sh12.9 billion.

The CBK attributes the increase to higher inflows from Europe and North America.

“In June 2015, remittance inflows increased by 17.1 per cent to USD 136 million compared to USD 116.1 million in June 2014 and increased by 5.3 per cent compared to inflows in May 2015.The increase was largely driven by flows from North America,” the CBK stated Wednesday.

NORTH AMERICA

Remittance inflows from North America accounted for close to half of the total remittances (49.3 per cent).

Over the same period, inflows from Europe decreased by 6.3 per cent and those from the rest of the World by 1.2 per cent.

The month-on-month increase may save the shaky shilling, which has maintained its weakening streak against the dollar, staying at the 100 mark for more than a month now.

The local currency opened at 102.04 against the greenback this morning, according to CBK rates.

CBK conducts a survey on remittance inflows every month through the formal channels that include commercial banks and other authorised international remittances service providers in Kenya. A number of remittances, however, pass through the unofficial channels.