Kenya’s foreign monthly cash transfers increase

The report indicates that the monthly inflows increased to USD212 million in 12 months to August 2018 from USD150 million in 2017 under the same period marking a 41.3 percent growth. [Photo: Courtesy]

 

Data from the Central bank of Kenya records that Kenyan’s abroad sent home USD 215.6(Sh21.6 billion) in August presenting a total amount of foreign remittances to USD2.5 billion (Sh255 billion) yearly.

The report also indicates that the monthly inflows went north to USD212 million in 12 months to August 2018 from USD150 million in 2017 under the same period marking a 41.3 percent growth.

The total financial inflows grew by 41.9 percent to record Sh255 billion in the last 12 months to August 2018 from a previous of SH179.7 billion in 2017 achieved by tax pardon on foreign investor’s assets held in diaspora.

National Treasury and Planning Cabinet Secretary Henry Rotich extended the amnesty period from June 30, by one year when presenting 2018/19 budget for foreign investors to voluntarily send home assets held abroad.

Kenyans living in North America repatriated most inflows by 51.6 percent followed by Europe with 33.2 percent as indicated in the Central Banks weekly bulletin.

CBK report indicates that diaspora remittances hit a high of Sh26.6 billion in June cumulatively due to uptake of digital banking by diaspora investors.

“The digital banking products have brought down the cost of money transfers. It is also explained by the uptake of new financial products,” CBK said in its weekly bulletin.

In 2017, Kenya recorded the highest diaspora inflows at Sh197 billion compared to tea’s total revenue of Sh129 billion after Sh120 billion in 2016 with tourism sector recording Sh120 billion in revenue collection.

According to CBK data, in 2018, June recorded the highest diaspora remittances with US leading followed by Europe and the rest of the world total inflow earnings.

The World Bank had predicted that money sent home from abroad will grow at 4 percent by the end of 2017 marking the slowest annual growth in excess of five years.