(CBK), diaspora remittances inflows to the country surged to $1.75
billion in the first six months of 2021. This figure represents a nearly
20% increase from the $1.46 billion recorded in the same period last
year.
2021 Inflows Set to Surpass 2020 Total
At this growth rate, Kenya’s 2021 remittances inflows appear on
course to surpass the 2020 total of just over $3 billion. However, the data
shows that on a monthly basis, the inflows dropped slightly from the
$315 million recorded in the fifth month to almost $306 million. This
drop from what is so far the highest monthly total is the only time the
diaspora inflows have tapered off in 2021.
In the meantime, the latest data shows that North America has now
cemented its position as the key source of remittances for the East
African country. For instance, in the first month of 2020, the North
American diaspora’s share of total remittances was about 48% or
approximately $125 million out of a total of $259 million.
North America Diaspora Dominates Inflows
However, in the record-breaking fifth month of the year 2021, North
America’s share increased to about 60%. In fact, in the sixth month,
North America’s share of total remittances increased slightly to 61.9%.
This increase is despite the fact that total inflows had dropped
marginally in that month.
Similarly, the European market, which accounted for 17.8% of total
remittances in the first month of 2020, saw its contribution marginally
increase to 21.7% in the fifth month. However, unlike North America
whose share of total remittances increased in the sixth month, Europe’s
share dropped to 20.5%.
As the official CBK data suggests, the Kenyan diaspora in North
America and Europe is becoming a key foreign exchange source for the
country. However, this diaspora contribution — which appears to exclude
informal remittances — is likely to increase if authorities formally
endorse remittances via crypto platforms.
source link : https://news.bitcoin.com/kenyan-remittances-surged-by-20-in-h1-north-america-and-europe-based-diaspora-contribute-over-80/
