This archive report was first published on 31 July 2020.
On July 30, 2020, Central Bank of Kenya (CBK) governor Patrick Njoroge announced a revised outlook for diaspora remittances, citing a strong recovery in June.
According to Dr. Njoroge, the CBK had initially projected a 12.3 percent dip in remittances, but this has been revised to a one percent growth from last year's Sh301.2 billion ($2.796 billion).
The recovery in June was particularly notable, with remittances reaching Sh31 billion ($288 million), the second-highest inflow in a single month.
CBK's revised outlook differs from the World Bank's projection of a 20 percent average dip in combined remittances across the world.
The CBK has also revised its outlook for Kenya's current account deficit, citing the expected recovery in remittances and exports.
Dr. Njoroge stated that the narrowing of the current deficit portends stability in the foreign exchange market and expects this to be sustained.
Despite the CBK's reassurance, the Kenya shilling has been under pressure in recent months, depreciating by 6.3 percent against the dollar since January.
CBK maintains that its forex reserves of $9.35 billion or 5.67 months import cover are adequate to deal with volatility.
