Diaspora remittances to Kenya reduced by $6.2 million (Sh879.5 million) in June 2023 to $345.9 (Sh49 billion) from $352.1 million (Sh49.9 billion) in May 2023, latest figures from the Central Bank of Kenya’s (CBK) weekly bulletin reveals.

Despite the reduction, the inflows increased by 6.1 per cent on a year-on-year basis from the $326.1 million (Sh46.3 billion) in June 2022, to stand at $4,017 million (Sh569.8 billion) from $4.012 billion (Sh569.1 billion) in 2022, an increase of 0.1 per cent.
Kenyans living abroad

As of May 2023, the US accounted for 54 per cent of the inflows, maintaining its top position as the largest source of contributions from Kenyans living abroad.

“The remittance inflows continue to support the current account and the foreign exchange (Forex) market,” the CBK said in its weekly bulletin.

As of July 13, the regulator said usable forex reserves remained adequate at $7,481 million  (Sh1.06 trillion) equivalent to 4.09 months of import cover.

“This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” the regulator said.

The forex reserves had reduced to $6.152 million (Sh854 million) as of May 2023, equivalent to 3.62 months of import cover, but has progressively been inching upwards. In June, it was $7,459 million (Sh1.04 trillion).

CBK maintains Forex reserves to balance Kenya’s payments, help influence the rate and support confidence in the market. They are essentially CBK’s back-up funds used to stabilise the shilling in order to reduce volatility.

The regulator said during the week in review, the shilling remained relatively stable against major international and regional currencies in the week ending June 13, exchanging at Sh141.29 to the US Dollar compared to Sh140.78 the previous week.

In addition to being an important source of forex to boost economy, remittances are supporting many Kenyan livelihoods locally.