Nairobi; Kenya: The amount of hard currency sent into Kenya by its citizens living abroad, known as remittances, jumped 20.34 per cent in August from the same month last year, Central Bank said on Friday.
Like other African economies, Kenya sees funds sent home for various reasons like support for relatives, as a vital source of foreign exchange, supplementing export earnings and helping to support the shilling.
The East African nation received $128.8 million during the month, up from $107 million in the year ago period, data from the Central Bank showed.
Fears over the impact of frequent gun and grenade attacks, blamed on Islamists, on the tourism sector, another key source of foreign exchange, have weighed on the shilling this year.
The currency has lost 2.9 per cent against the dollar this year. Some 49.7 per cent of the remittances in August came from North America, central bank said.
READ MORE
Tight wallets, low cheer as Kenyans cut back for X-mas
Pre-poll gamble: How Ruto's Sh4.7tr budget aims to lift hustlers' lives
Battle of the malls: Nairobi lights up for the festive season
Total remittances this year stood at $936 million at the end of August, compared with $1.3 billion for the whole of last year.
Economists suggest the growth in remittances is mainly driven by an increase in the number of Kenyans working in industries such as health and academia, which are relatively recession-resistant.
