Money inflows into the country from Kenyans working and living abroad have topped KES 8.9 billion shillings. Remittances from Kenyans in the diaspora increased 2% from the $103,970,000 in February 2012 to $106,399,000 in March 2012.
In a commentary on the March 2012 remittances, the director of the Central Bank of Kenya’s Research Department Mr. Charles Gitari Koori attributed the increased remittances to:
- Improvement in data collection techniques and proper classification of remittances by some commercial banks.
- Aggressive outreach to the Diaspora to invest in Government’s Savings Development and Infrastructure bonds through these formal channels.
- Increased competition among money transfer service providers that reduced transaction charges.
Remittances from North America increased by 11.07% from KES 4.35 billion million in February 2012 to KES 4.834 billion in March 2012 and accounted for 54.31% of total remittances. Over the same period, remittance inflows from Europe declined by 2.8% from KES 2.45 billion to KES 2.38billion.
The March 2012 remittances are 49% more than those reported in March 2011 and these cash inflows into the country have helped support the economic growth and the development of markets such as the bond market that regularly reports 100% + over-subscriptions, the Nairobi Securities Exchange and the real estate market, with the luxury end of the market being the fastest growing in the world (read more on that here).