This archive report was first published on 30 June 2020.
Kenya's diaspora remittances have shown signs of recovery, with a 24 percent rise in May to 27.4 billion shillings. This increase is attributed to eased COVID-19 restrictions in various countries.
According to the Central Bank of Kenya, the US, UK, and South Africa were among the top contributors to the increase in remittances. Cumulatively, diaspora remittances now stand at 299 billion shillings in 12 months to May.
Despite the recovery, global diaspora remittances have declined significantly in the last six months due to the COVID-19 pandemic's impact on the global economy.
Projections by the World Bank indicate that diaspora inflows are expected to drop by 20 percent this year, with low and middle-income countries being the hardest hit, experiencing a 19.7 percent drop to $445 billion.
Notably, the highest increases in inflows came from the US, South Africa, Saudi Arabia, the UK, Qatar, Australia, and Switzerland in that order.
CBK data also reveals that the cumulative inflows in the 12 months to May 2020 totaled 298 billion shillings, reflecting a growth of 2.8 percent compared to the same period in 2019.
