Kenyans abroad have shattered expectations by sending an unprecedented Sh54.6 billion ($378.1 million) back home in July 2023, marking a remarkable surge in remittances amidst global economic uncertainties.
In a surprising turn of events, the Central Bank of Kenya (CBK) has reported that remittances from Kenyans living abroad have reached an all-time high, defying inflation concerns and economic challenges. This record-breaking figure showcases a substantial increase of $23.2 million (Sh3.3 billion) compared to the previous month’s $345.9 million (Sh49.9 billion), as revealed in the latest CBK weekly bulletin spanning until August 18.
This notable surge in remittances not only supports families and friends back home but also contributes significantly to the nation’s foreign exchange reserves, aiding in financing imports, managing debts, and bolstering reserves. Moreover, it aids in reducing the trade deficit, thus positively impacting the current account and exchange rate stability.
“The continuous surge in remittance inflows has proven to be a substantial support for our current account balance and has added to the stability of the exchange rate,” stated the CBK. The United States remains the primary source of these remittances, accounting for a dominant 55 percent share in July 2023.
The remarkable increase in remittances is attributed to various factors, with one prominent catalyst being the weakening value of the Kenyan shilling. Kenyans living abroad are leveraging the robust value of the dollar and other major international currencies against the struggling shilling, making remittances a strategic move to capitalize on their purchasing power.
Despite the ongoing global economic uncertainty, which has prompted concerns about financial sector stability in advanced economies, Kenyans abroad are steadfast in their support for loved ones back home. A study conducted by WorldRemit emphasizes that although inflation has been a point of concern in key source countries like the United States, remittances are anticipated to remain steady as diaspora Kenyans continue to make sacrifices to aid their families.
This impressive remittance record demonstrates the resilience of Kenyans in the diaspora in the face of economic headwinds, enabling their families to navigate the rising cost of living. The consistency of these inflows showcases the enduring bond between Kenyan expatriates and their homeland, illustrating a commendable dedication to improving the lives of their loved ones.
The inflow of remittances doesn’t just provide financial support; it acts as a lifeline for communities, assisting them in adapting to the evolving economic landscape. Despite the uncertainties, the diaspora’s determination remains unwavering, reflecting their commitment to uplifting their families and the nation as a whole.
Photo Source : Google
By: Montel Kamau
Serrari Financial Analyst
22nd August, 2023
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
