Diaspora Remittances Hit a Higher Mark
The first 10 months of 2018 has seen cash sent by Kenyans living and working abroad amount to $2.23 billion (Sh228.92 billion), a huge rise of 42.48 per cent compared to last year’s $1.57 billion (Sh160.66 billion) in the same period according to CBK.
Remittances by Kenyans in diaspora grew by 39.54 percent in 12 months through October facilitated by increasing investment channels and a tax amnesty.
“The steady rise in transmittals, is largely informed by a growth in investment products targeting the diaspora community and an extended tax pardon for Kenyans who repatriate wealth stashed in foreign countries,” Aly-Khan Satchu, an investment analyst who runs advisory Rich Management.
This year’s January to October inflows exceeded the $1.95 billion (Sh199.50 billion) remittance of entire 2017 by Sh29.42 billion, as shown by the CBK data based on transactions through official channels such as banks and cash transfer firms.
“Inward remittance flows remained resilient and amounted to $219 million (Sh22.46 billion) in October 2018, which was 18 percent higher than in October 2017,” CBK said in its weekly bulletin.
“North America, Europe and the rest of the world accounted for 50 percent, 32 percent and 18 percent, respectively of the total remittance in October 2018.
“Remittances have been a silver bullet for many African countries and now outpace foreign direct investments, (foreign) Aid and any other source of hard currency you care to mention,” analyst said.