CBK Receives Highest Amount of Billions From Kenyans Living In America

  • File image of Kenyan bank notes
    File image of Kenyan bank notes
    Twitter
  • Kenyans living and working abroad have sent home a cumulative amount of Ksh34 billion ($315 million) in the month of May 2021. According to the Central Bank of Kenya (CBK), this figure presents the highest number of remittances sent into the country.

    Moreover, Kenyans in America sent home Ksh2.05 billion ($190.7 million) in May, registering the highest fiscal amount ever sent from the US.

    Statistically, the total figure is 22.3 percent more this year than in the month of May 2020.  This upward trend is mainly owed to the massive surge of remittances from America which increased by 31 percent from Ksh15.5 billion Ksh20.4 billion).

    In May 2019, remittance from the US stood at Ksh12.6 billion. This was followed by a 60 percent increase in 2020. 

    Central Bank of Kenya Governor Patrick Njoroge during a press conference in Nairobi on May 28, 2020.
    Central Bank of Kenya Governor Patrick Njoroge during a press conference in Nairobi on May 28, 2020.
    Twitter

    Remittances from Europe peaked at Ksh7.34 billion this year as compared to the Ksh4.55 billion received in May 2020.

    In 2019, Kenyans in Europe collectively transmitted Ksh5.5 billion. This translated to a dip of 18 percent in 2020 followed by a peak of 60 percent by May 2021.

    Meanwhile, Kenyans in countries from the rest of the world saw Ksh6.02 billion dispatched into local financial institutions in 2021.

    In 2020, Ksh7.43 billion was remitted into Kenya and in 2019 Ksh 7.83 billion was received. Just as in Europe the trend is inconsistent as characterized by multiple percentage dips and peaks.

    This is as opposed to the consistent rise of remittances from North America which have been observed to have an upward curve in the last three years.

    CBK records indicate Kenyans abroad have increased remittances into the country despite socio-economic setbacks attributed to Covid-19 in the continent and the rest of the world alike.

    It has been a period that has seen scores of employees and workers lose livelihoods, as well as commercial entities, lose revenue.

    Given that remittances are among the key sources of foreign currency, the Central Bank, Kenya Bureau of Statistics, and the Ministry of Foreign Affairs have converged efforts to smoothen the conveyance of funds to Kenya.

    Remittances are also critical in sustaining livelihoods for Kenyans who rely on their families abroad thereby giving more reason to improve channels of sending and receiving monies from overseas.

    Central Bank of Kenya (CBK) building in Nairobi.
    Central Bank of Kenya (CBK) building in Nairobi.
    Simon Kiragu
    Kenyans.co.ke