Africa is now the most dynamic source of diaspora flows to Kenya

by MMC
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Africa is now the most dynamic source of diaspora flows to Kenya

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Diaspora remittances from African countries to Kenya recorded 42 percent growth in the seven months to July, as more Kenyans continue to seek jobs and study abroad , particularly on the continent.

Data from the Central Bank of Kenya (CBK) reveals that in the seven months to July, Kenyan citizens living in other African countries remitted $164.4 million (Sh22.2 billion), compared to $116 million (Sh15.6 billion) last year.

Growth is the fastest of any continent, at a time when North America and Europe are experiencing high inflation, averaging 8 percent in the United States and 7.9 percent in the United Kingdom. .

Most of the money received from those residing abroad is spent on consumption, with North America accounting for 60 percent.

The search for “greener pastures” in terms of employment and education is the main factor driving Kenyans to try their luck abroad.

Uganda and Zambia are examples of countries offering better opportunities for Kenyans.

Capital inflows from Zambia more than doubled, increasing 136 percent to $5 million, followed by Uganda, which recorded a 113.5 percent growth in remittances sent home by Kenyans .

Inflation in the United States has since declined to 3.2 percent in July. But with inflows cumulative over seven months, the world’s largest economy still shrank 1.6% ($22 million) to $1.36 billion.

Remittances, the largest source of foreign exchange inflows into Kenya, stood at $4.3 billion (Sh483 billion last year), surpassing tourism earnings (Sh268 billion ), tea (163 billion shillings) and horticulture which brought in 152.2 billion shillings last year. year.

High global inflation caused by geopolitical tensions led the United States to increase interest rates, resulting in restrictive global monetary policies and a preference for government securities as investment assets due to a reduction capital inflows into Kenya.

On the other hand, inflows from Middle Eastern countries recorded a significant decline during the period, with Bahrain showing an 80% reduction, from $5.6 million last year to $1 .1 million dollars this year.

Qatar recorded a decline of 38.4 percent to $31.9 million, while inflows from Oman declined to $1.1 million (68 percent).

South Africa also saw a significant decline, from $13.5 million to $6.3 million for the January-July period last year.

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