By Judith Gicobi
The first half of the year, from January to June, saw the remittance of $2.045 billion (Sh242 billion) from Kenyans who live and work overseas.
According to the most recent data from the Central Bank of Kenya (CBK), remittance inflows in June 2022 reached $326.1 million (Sh38.6 billion), marking a 6.6 percent rise over $305.9 million (Sh36.2 billion) received in June 2021.
Inflows totaling $4,012 million have been made over the past 12 months as opposed to $3,383 million during the same time period in 2021, an increase of 18.6%.
With 59 percent of all remittances to Kenya coming from the United States in June 2022, the country continues to be the leading source of these funds.
The current account and currency rate stability, according to CBK, are still supported by the significant inflows of remittances.
“The Kenya Shilling remained stable against major international and regional currencies during the week ending July 14th. It exchanged at Sh118.23 per US dollar on July 14, compared to Sh118.03 per US dollar on July 7th,” CBK says in its weekly bulletin.
At $7,953 million (4.59 months of import cover) as of July 14th, the usable foreign exchange reserves were still sufficient.
“This meets the CBK’s statutory requirement to endeavor to maintain at least 4 months of import cover, and the EAC region’s convergence criteria of 4.5 months of import cover,” CBK adds.