Diaspora remittances drop in July to Ksh30.03 billion

Dollars. [Photo courtesy]

Remittances from Kenyans in the diaspora dropped in July to Ksh30.03 billion ($276.9 million) from Ksh31.28 billion ($288.5 million) sent in June.

The figures are a representation of the aftereffects of COVID-19 pandemic across the world.

Remittances from Kenyans in North America have dropped significantly going by data by the Central Bank of Kenya.

July inflows from North America dropped to $144.2 million (Ksh15.6 billion) compared to $147.3 million (Ksh15.9 billion) sent in June.

However, Kenyans in Europe sent more money back to Kenya. Europe remittances were $47.8 million (Ksh5.2 billion) from compared to June’s $43.8 million (Ksh4.7 billion).

CBK data further showed that $85.04 million (Ksh9.2 billion) July inflows from the rest of the world dropped from $97.4 million (Ksh10.6 billion) sent in June.

On average, diaspora remittances dropped by Ksh11.6 million in July compared to June where the total remittances stood at $258.2 million (Ksh27.9 billion).

Although July remittances dropped, Kenyans in the diaspora sent more money back to Kenya in 2020 than in 2019 for a similar period under review.

Between January and July 2020, diaspora remittances stand at $1.738 billion (Sh188.5 billion) which is a 3.9 per cent increase compared to a similar period in 2019, where inflows totalled $1.674 billion (Sh181.5 billion).

Inflows from Kenyans in the US continue topping the charts as more money is sent back to Kenya.

“The fact that the inflows continued unabated, and in fact expanding on a 12 month cumulative comparison, suggests the resilience of the diaspora skillset,” Financial Risk Analyst Mihr Thakar said as reported by the Star.

The increased diaspora remittances were occasioned by the need to take care of relatives back in the country during lockdown season and through the pandemic which rendered more than 4 million people jobless.

“Where there was a period of lockdown in a country and the inflows continued relatively unabated, there is an indication of high dependency back home, albeit inconclusive,” Thakar added.