Diaspora remittances increase in August

More Kenyans in the diaspora increased remittances to the country in August 2015 indicating a boon to their families and businesses. The increase could also be attributed to a stabilizing global financial system with improved economy of the US.

Data from Central Bank of Kenya (CBK) indicates that remittance inflows to Kenya in August 2015 increased by 3.2 percent to USD 132.9 million compared to USD 128.8 million in August 2014 and increased by 1.4 percent when compared to inflows in July 2015.

The improvement reflected inflows from North America and Europe.

The US economy has rebounded over the past months with the world feeling its bouncing effects with the strengthening of the dollar.

Remittance inflows from North America accounted for 48.3 percent of total inflows and increased by 4.2 percent to USD 64.2 million in August 2015 from USD 61.6 million in July 2015. Over the same period, inflows from Europe also increased by 1.1 percent to USD 36.7 million from USD 36.3 million.

Source: Central Bank of Kenya.
Source: Central Bank of Kenya.

Inflows from the rest of the world however, declined by 3.0 percent to USD 32.1 million from USD 33.1 million

Increased remittances also signals the diaspora community wanting to further boost the growth of the country. The government is struggling to meet revenues and with high interest rates making citizens sweat to get credit, these numbers show one mechanism the government can explore to boost its books and enable it fund development projects, loans and also pay wages.

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