daniel chigunwe
Slowing inflationary pressure in advanced economies such as the US and Britain lifted the monthly flow of dollars from Kenyans living abroad to record levels, in part helping ease pressure on the shilling.
Diaspora remittances amounted to US$412,41 million (about Sh65.83 billion using the average conversion rate of 159.63 units per dollar) in January, official data shows, the highest levels on record.
The Central Bank of Kenya (CBK) statistics indicate inflows from the US —which accounted for 54 percent of the total remittances — grew 8,17 percent year-on-year to US$221,01 million (about Sh35,28 billion), a 25-month high.
The cash wired home by Kenyans in the world’s largest economy during the review month was the highest in post-Russia-Ukraine war which disrupted global supply chains, sending inflation to decades-high levels.
Soaring energy, food, and rent prices due to supply disruptions that followed Russia’s invasion of Ukraine in February 2022 had pushed up living costs in the US and Europe to decades-high levels. That ate into disposable income that Kenyans in those countries tap to help families and dependents back home.
Inflation in the US rose 3,1 percent in January, slower than five percent growth in wages, freeing up income for households there.
Data shows remittances from the UK, which has in recent months also witnessed slowed price pressures, more than doubled in January compared with a year earlier.
Kenyans in Britain sent home US$49,02 million (about Sh7,83 billion) in January, a 115,79 percent jump over US$22,72 million (Sh3,63 billion) a year ago, lifting Europe’s second-largest economy above Saudi Arabia. – The East African
Online Reporter