Official data from the CBK shows that Uganda has lately been a large contributor to diaspora dollars flowing into Kenya. Remittances from Uganda are reported to have doubled in the first five months of the year as compared to the previous year. The amount of cash transferred by the diaspora community via formal channels totals Kshs3.3 billion, which is a 100.8% jump over Kshs1.6 billion recorded the previous year.
Read more: US, UK and Saudi Arabia Tops in Diaspora Remittances
Data from the Central Bank of Kenya shows that Uganda was the fifth-largest source of diaspora remittances after the USA, UK, Saudi Arabia, and Germany. There were heavy inflows recorded in the month of May, amounting to Kshs1.3 billion. The Kenya Diaspora Alliance (KDA) attributed the heavy inflows to the strengthening of the Ugandan Shilling. The one Kenyan shilling is trading at shs26 Ugandan shillings, down from shs30 Ugandan shillings in 2022.
Read more: Diaspora Remittances Increased By 16.5% In March
Dollar inflows from citizens abroad have slowed this year compared to a few years ago. For instance, remittances between January and May totalled Kshs 239.2 billion, which was a 1.8% rise from Kshs 237.8 billion recorded in the corresponding period in the previous year. This growth is largely on account of the reduction in flows from Kenyan citizens who are in the USA, who account for approximately 60% of the total flows. The inflows from the USA in the first five months dropped by 5% year on year to Kshs135.6 billion.
Read more: We Expect A Continued Depreciation Of The Shilling-Cytonn Report
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