Kenya received a record amount of money from its citizens living and working abroad in July 2023, according to the latest data from the Central Bank of Kenya (CBK).
The CBK said remittances surged to Sh54 billion in July, up from Sh49 billion in June. This was the highest monthly inflow ever recorded, surpassing the previous peak of Sh51 billion in December 2022.
“Remittance inflows in July 2023 hit a record monthly high of $378.1 million compared to $319.4 million in July 2022, an 18.4 per cent increase,” said the CBK.
The cumulative inflows for the 12 months to July 2023 totalled $4,076 million compared to $3,995 million in the same period in 2022, an increase of two per cent, the CBK added.
Remittances are an important source of foreign exchange for Kenya, helping to boost its balance of payments and support its currency.
According to the World Bank, remittances can stimulate economic growth, reduce poverty, improve education and health outcomes, and foster entrepreneurship and innovation.
The CBK attributed the increase in remittances to improved economic activity in some of the major source countries, such as the United States, the United Kingdom, and Saudi Arabia.
In addition, the adoption of digital platforms that have made it easier and cheaper to send money across borders.
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“The US remains the largest source of remittances into Kenya, accounting for 55 per cent in July,” said CBK.