Kenyans living abroad sent Sh50.45 billion more for the 11 months to November, data by the Central Bank has shown.
Diaspora remittance increased 28.41 per cent during the review period to Sh227.98 billion from Sh177.53 billion over the same period in 2017.
The growth has been driven by a better global economic outlook and the tax amnesty on remittance imposed by the Kenya Revenue Authority last year.
Diaspora inflows which have stood as Kenya’s leading foreign exchange earner since 2015 can potentially decrease government borrowing, significantly easing the country’s debt burden.
“The diaspora remains a critical mass whose contributions to the global economy is immense, and which, if well harnessed, is a crucial demographic dividend for national development and international solidarity,” National Diaspora Council of Kenya chairman Emmanuel Mutisya said.
CBK data shows foreign cash inflows hit the highest point in June at Sh27.11 billion and the lowest in September at Sh20.89 billion.
November remittance stood at Sh22.41 billion, which is expected to have grown last month as Kenyans in diaspora remit more money home during the festive season.
Remittances have in the past gone up significantly in December compared to the average over the other 11 months of the year.
Although year after year, the government has toyed with the idea that monies received from Kenyans living in the diaspora could be used to relieve the country’s sizeable public debt burden, they are yet to establish a Diaspora Bond.
