A remittance is money sent by a person in a foreign land to his or her home country. Due to the huge sums involved, remittances are now being recognized as an important contributor to the country’s growth and development.
The Central Bank of Kenya conducts a survey on remittance inflows every month through the formal channels that include commercial banks and other authorized international remittances service providers in Kenya.
Commentary on Remittances for June 2013
In the month of June 2013, remittances to Kenya declined by 9.4 percent (or USD 10.34 million) to USD 99.81 million from USD 110.15 million recorded in May 2013. The reduction of remittance inflows was mainly in a USD 9.53 million decline from the North American region. However, when compared to a year ago, remittance inflows in June 2013 record a marginal increase of 0.32 percent.
The 12 month cumulative inflows increased by 10.89 percent to USD 1,199 million in the year to June 2013, while the 12 month cumulative average inflows increased to USD 99.9 million in June 2013 from USD 90.1 million in June 2012. The flattening of the 12 month cumulative average flows reflects resilience in the monthly remittance inflows (Table 1 and Chart 1) since January 2013.
Remittance Inflows by Source Market
In the month of June 2013, the share of remittances from North America was 48.2 percent compared to 52.3 percent in May 2013. Remittances from this region declined by 16.54 percent to USD 48.08 million in June 2013 from USD 57.61 million in May 2013. However, the share of remittance inflows from Europe and the Rest of the World increased to 28.3 percent and 23.5 percent in June, 2013 from 26.3 percent and 21.4 percent in May, 2013 respectively.