Diaspora remittances up by Sh2.4 billion in October
By Maureen Kinyanjui |
Kenyans living abroad sent home Sh56.7 billion in October 2024, marking a Sh2.4 billion increase from September's Sh54.4 billion.
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This represents a 22.9 per cent growth compared to October 2023, when remittances stood at Sh46 billion, according to the Central Bank of Kenya (CBK).
In its bulletin released on November 15, the CBK revealed that cumulative remittances for the 12 months ending October 2024 rose by 15.3 per cent, reaching Sh623 billion, up from $Sh532 billion recorded during the same period last year.
"The remittance inflows continue to support the current account and the foreign exchange market. The US remains the largest source of remittances to Kenya, accounting for 53.7 per cent in October 2024," noted the CBK.
October emerged as the best-performing month for diaspora remittances this year, with high inflows also recorded in January, August, and September.
The CBK reported that the country's foreign reserves climbed to their highest level in three years, boosted by the IMF's recent dollar disbursement and the surge in diaspora inflows.
By November 14, the reserves stood at Sh1.2 trillion, sufficient to cover 4.8 months of imports.
"The usable foreign exchange reserves remained adequate at $9,276 million as of November 14, 2024. This meets the CBK's statutory requirement to maintain at least 4 months of import cover," stated the bulletin.
Despite the increased dollar inflows, the Kenyan shilling weakened marginally against the US dollar, trading at Sh129.35 per dollar on November 15 compared to Sh129.20 on November 7.
Analysts attributed the slight depreciation to the global strengthening of the US dollar following the recent presidential election.
The CBK continues to monitor the foreign exchange market and current account dynamics as diaspora inflows remain a critical pillar of Kenya's economic resilience.
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