Diaspora cash inflows increases; CBK report

The weekly bulletin indicates that total diaspora cash inflows increased in December compared to November 2018. [Photo: Courtesy]

Central Bank of Kenya weekly bulletin has reported that total cash inflows from foreign countries increased by 39 percent to Sh274.37 billion in relation to Sh198.07 billion in 2017.

“North America, Europe and the rest of the world accounted for 45 percent, 32 percent and 23 percent, respectively, of the total remittances in December 2018,” CBK report said.

Cash inflows from Kenyans living abroad rose to Sh24.79 billion in December, a 10.75 percent increase as compared to Sh22.40 billion in November, 2018.

The upward trend in Kenya’s economic growth has said to be on a better economic outlook as well as tax amnesty on transmittals by Kenya Revenue Authority in 2018.

In August 2018, CBK records that Kenyan’s abroad sent home Sh21.6 billion marking Sh255 billion total amount of foreign remittances yearly.

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.

CBK report indicates that diaspora remittances hit a high of Sh26.6 billion in June 2018, cumulatively due to uptake of digital banking by diaspora investors.

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 inflow earnings.