Cash sent home by Kenyans living abroad almost doubled during the first quarter of the year compared to the same period last year.
In the January-March period, diaspora remittances grew Sh20.99 billion to record Sh64.44 billion collected.
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, Stanbic Bank regional economist Jibran Qureishi told the Star yesterday.
The 48.31 per cent growth in foreign cash inflows is significantly large considering data by the Central Bank for the review period shows remittances grew by an average 8.86 per cent annually since 2013.
Given CBK data is solely based on remittances collected through formal channels, the World Bank believes the actual amount of these foreign cash inflows could be larger when you put into account transfers through unrecorded channels.
This include money brought home on return and transfers through unregistered intermediaries.
diaspora can fund sgr
Diaspora inflows which have stood as Kenya’s leading foreign exchange earner over four years can potentially decrease government borrowing, significantly easing the country’s debt burden.
By CYNTHIA ILAKO
