CBK: Money from Kenyans in diaspora down by Sh1.8 billion in November
By Alfred Onyango |
So far this year, the months of January, August, September and October recorded the highest dollar inflow from diaspora remittances.
Kenyans working and living abroad cut the money they send home by $14 million (Sh1.8 billion) in November, the latest figures have shown.
This brings down the total inflows in the month under review to $423.2 million (Sh54.7 billion) at the current exchange rate, down from the previous record month when inflows totalled $437.2 million (Sh56.5 billion).
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Compared to the same period last year when the inflows totalled $355.0 million (Sh45.9 billion), the record is an increase of 19.2 per cent.
The weekly bulletin by the Central Bank of Kenya (CBK) further reveals that the cumulative inflows for the 12 months to November 2024 increased by 16.7 per cent to $4,872 million (Sh629.9 billion), compared to $4,175 million (Sh539.8 billion) in a similar period in 2023.
"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 53.4 per cent in November 2024," CBK noted.
A current account represents the country's imports and exports of goods and services, payments made to foreign investors, and transfers such as foreign aid.
So far this year, the months of January, August, September and October recorded the highest dollar inflow from diaspora remittances, with October highlighted as the best-performing month.
The central bank also noted that the country's foreign reserves dwindled in the period under review.
The forex reserves held by the central bank declined by 3.4 per cent to $9,007 million (Sh1.16) trillion), or just about (4.6 months of import cover) as of November 28.
This is from the $9,323 million (Sh1.21 trillion), an equivalent of 4.8 months of import cover, recorded in the first week of the month, the week ending November 7.
Nevertheless, the reserves have kept the downward trend so far this month, to remain at $9,010 million (Sh1.16 trillion) (4.6 months of import cover) as of December 19.
However, CBK maintains a brave face, saying the record meets its statutory requirement to endeavour to maintain at least 4 months of import cover.
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