25 January 2014

Kenya: Diaspora Inflows Rise By 10.3 Percent to Hit Sh109 Billion

MONEY sent into the country by Kenyans in the diaspora rose by 10.3 per cent in 2013 compared to the previous year driven largely by cash from North America.

Data released by the Central Bank on Friday showed that remittances for last year totalled $1.3 billion(Sh111.4 billion) compared to $1.17 billion (Sh100 billion) sent in 2012. This is despite a slight drop last month of 0.2 per cent when remittances stood at $113.2 million(Sh9.7 billion) compared to $113.4 million (Sh9.71 billion) recorded in November.

"North America accounted for 49 per cent of total remittances while Europe and the rest of the World accounted for 27 per cent and 24 per cent, respectively in December 2013. North America's dominant position is a reflection of the large number of Kenyans with gainful economic activities in the region," said CBK.

In December, money sent from Europe and the rest of the world dropped to $30.5 million(Sh2.6 billion) and $26.7 million(Sh2.3 billion) respectively from November's total of $34.4 million(Sh2.9 billion) and $27.5 million(Sh2.4 billion).

December remittances were up by 7.2 per cent compared to the same month in 2012 when they stood at $105.7 million(Sh9.1 billion).

Average monthly money inflow for the year 2013 increased to $107.6 million(Sh9.2 billion) from $97.6 million(Sh8.4 billion) in 2012.

Last year the remittances rose gradually every month but dropped by nine per cent in June to $99.8 million(Sh8.6 billion) due to reduction in money sent from the US as it recorded a slow economic recovery period then. June recorded the lowest value of remittances for the whole year.

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