January Kenya remittances jump 20 per cent

Monday March 7 2016

Remittance flows to Kenya and Ethiopia from their diaspora have significantly increased compared to the rest of the Sub-Saharan Africa, according to a new World Bank report. PHOTO | FREDRICK ONYANGO | NATION MEDIA GROUP

Kenyan currency. PHOTO | FREDRICK ONYANGO | NATION MEDIA GROUP 

By BRIAN NGUGI
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Diaspora remittances to Kenya increased by 19.9 per cent to Sh14 billion ($137.5 million) in January 2016, up from Sh11.6 billion ($114.6 million) in January 2015.

Central Bank of Kenya (CBK) attributed the increase to more money coming in from the rest of the world excluding North America and Europe, which are key sources of remittances to Kenya.

“The rest of the world, though accounting for the least amount by volume and market share contributed most of the increase in remittance inflows in January 2016, and fully offset the decline recorded from North America and Europe,” said CBK Monday in its latest survey.

The CBK said inflows in January 2016 were 2.6 per cent higher than in December 2015, with the increase largely from the rest of the world.

Cumulatively, the CBK survey shows inflows in the 12 months to January 2016 increased by 9.7 percent to Sh15.8 billion ($1,571 million) from Sh14.6 ($1,432 million) in the year to January 2015.

The CBK conducts a survey on remittance inflows every month through formal channels that include commercial banks and other authorized international remittance service providers in Kenya.