Diaspora Remittances to Kenya rise 4.12pc in first half of the year

Kenyans living in the diaspora sent KSh91.6 billion Billion in the first half of the year, a 4.1 per cent rise when compared with the same month in 2016, the central bank said in a statement.

According to the CBK data, the amount  rose in the second quarter of this year compared to the first, peaking at an all-time monthly high of KSh16.6 billion in May.

The remittance flows helped shore up foreign reserves in the period which grew from USD 6.97Bn (4.56 import cover months) to USD 7.96Bn (5.26 import cover months) in the half year period.

Notably, the last two months of 1H17 was marked with USD 345Mn depletion in the reserves from its April peak of USD 8.31Bn as the central bank supported the shilling.

Latest CBK weekly report indicate foreign reserves maintained its positive steam to a second consecutive week ending at USD 7.49Bn (4.97 months import cover).

“We expect diaspora remittance, tourism and tea earnings to boost foreign exchange reserves in the remaining months of the year,” says Genghis CapitalAnalysts.