DOLLAR INFLOW

Summer bunnies push October remittances up to Sh22.7Bn

Kenyans in the US sent the highest amount of Sh11.2 billion in October as 10-month remittances hit Sh237.4 billion.

In Summary

•The increase came ahead of the December holidays, common with the home coming of persons living abroad.

•Remittances had stagnated at the $214 million (Sh21 billion) mark in August and September after dropping from $224.5 (Sh22.8 billion) in July.

Kenyans living and working abroad sent home more money in October compared to September, latest data shows.

This could be in early preparations for Christmas and clearance of pending school fees in the year's last term.

Central Bank of Kenya latest data shows diaspora remittances for October slightly edged up 4.1 per cent to close at $224.3 million (Sh22.7 billion) compared to $214.7 million (Sh21.8 billion) in September.

The slight increase came two months off the December holidays, common with the home coming of persons living abroad, popularly referred to as 'summer bunnies', an indicator money was sent home for early preparations.

 

Remittances had stagnated at the $214 million (Sh21 billion) mark in August and September after dropping from $224.5 (Sh22.8 billion) in July.

People tend to come home around the quarter because most of the diaspora market is winter so what could have increased the remittances is people could be sending money in preparation for their visit,” said Johnson Denge, Cytonn Investments' commercial and administration director.

The highest remittances this year however remains in June when $295.3 million (about Sh30 billion) was sent home, as the government amnesty on foreign income came to a close.

Kenyans in the US sent more money(Sh11.2 billion) up from Sh11.1 billion the previous month.

Remittances from Europe however recorded the highest growth at Sh4.7 billion up from Sh4.1 billion, a 13.4 per cent increase.

The rest of the world accounted for Sh6.9 billion, a 5.5 per cent growth compared to September's Sh6.5 billion.

Total remittances in the year to October rose four per cent o hit Sh237.4 billion, up from Sh227.8 billion in a similar period last year.

 

The dollar flow has helped ease current account deficit.

“Preliminary data shows that the current account deficit narrowed to 4.1 per cent of GDP in the 12 months to October 2019 from 5.0 percent in December 2018. This reflects slower growth of imports, resilient diaspora remittances and strong receipts from service exports,” CBK says in its weekly bulletin.