Kenya Records Highest Diaspora Remittance From Africa

Over the past seven months, Kenya has seen a spectacular 42 percent growth in remittances from the African diaspora. More Kenyans are seeking work possibilities, notably within the African continent, which has contributed to this rise.

The Central Bank of Kenya (CBK) reports that between January and July of this year, expatriates from Kenya living in other African countries paid home at least $164.4 million (Ksh22.2 billion). This amount is significantly more than the $116 million (Ksh15.6 billion) that was reported during the same period last year.

Compared to other continents, especially North America and Europe, which have been dealing with high levels of inflation, this increase in remittances is noticeably larger. While the UK saw a rate of 7.9 percent throughout this time, the US saw inflation on average of 8%.

The desire for “greener pastures,” whether in terms of work or education, is the main motivation motivating Kenyans looking for chances overseas.

According to sources, expatriates from Kenya are becoming more interested in places like Zambia and Uganda. Zambian remittances more than doubled, growing by an astounding 136 percent to $5 million. Kenyan citizens’ remittances increased by 113.5% to Uganda, which was closely behind.

Although US inflation dropped to 3.2 percent in July, the total inflows over the previous seven months decreased by 1.6 percent, or $22 million, to $1.36 billion.

Remittances, which outnumber revenues from other industries including tourism ($1.85 billion), tea ($1.13 billion), and horticulture ($1.1 billion) recorded last year, are the main source of foreign money inflows into Kenya.

The United States raised interest rates in response to the spike in global inflation that was caused by geopolitical unrest. As a result, there were fewer inflows into Kenya as a result of contractionary global monetary policy and a preference for investing in government securities.

Remittances from Oman showed a 68 percent reduction, totaling $1.1 million, while remittances from Qatar saw a substantial decline of 38.4%, totaling $31.9 million. Remittances from South Africa also saw a dramatic drop, decreasing from $13.5 million in the January–July 2016 period to $6.3 million.