Diaspora money remitted into the country significantly dropped in July as compared to earlier months in the year. According to Central Bank of Kenya reports, in July 2012, remittances to Kenya amounted to US$ 92.7 million (KES 7.88 billion), or 6.8% lower than US$ 99.5 million (KES 8.46 billion) in June 2012.
CBK attributed the decline as reflection decline in inflows from North America and Europe. In the year to July 2012, total remittances inflows stood at US$ 1,101 million, 42.86% higher than the total remittances in the year to July 2011 which stood at US$ 770 million (KES 65.45 billion).
The average remittances inflow in the year to July 2012 amounted to US$ 91.7 million (KES 7.795 billion) up from US$ 64.2 million (KES 5.46 billion) recorded in the year to July 2011. The 12-month cumulative average remittances flow has sustained an upward trend from the second half of 2010. CBK attributed the pick-up of remittances inflows is attributed to improved data collection techniques reflecting proper classification of remittances data by commercial banks, increased participation of the diaspora in the primary issues of government bonds and increased competition among money transfer service providers that has reduced transaction charges.
Mobile phone companies’ partnership with international money transfer players such as Western Union, thereby making it cheaper and more convenient to remit money back home.
The Central Bank of Kenya conducts a survey on remittance inflows every month through the formal channels that include commercial banks and other authorized international remittances service providers in Kenya.
[Also read: Why Finance Players are looking to the diaspora]