However, compared to the same period last year, remittances from the diaspora increased by 21.7%, according to the latest data from the Central Bank of Kenya (CBK).
CBK data showed cumulative inflows for the 12 months ending January amounted to $3.778 billion (427 billion shillings) compared to $3.113 billion (351.4 billion shillings) during the same period in 2021, an increase of 21.4%. Additionally, the CBK noted that the United States was the largest source of remittances to Kenya, accounting for 63.6% of total inflows.
“Gulf states such as Saudi Arabia, UAE, Qatar and Bahrain have also become important drivers of remittances, in line with the growing number of Kenyans immigrating to these countries in search of employment. “, The star reported.
Kenya’s economy is heavily dependent on remittances, which are a key source of hard currency, as well as tea exports and tourism. However, tea and coffee revenues have declined due to high global supply, leading to price erosion.
Tourism, which was once one of Kenya’s biggest foreign exchange earners and the third largest contributor to GDP after agriculture and manufacturing, has been hardest hit by Covid-19. However, new data suggests signs of economic recovery, with international arrivals up 53.3% to 870,465 from 567,848 in 2020.