|
 Mr. Charles Gitari Koori,
Director Research Department
The Central Bank of Kenya conducts a survey on remittance inflows every month from the formal channels that include commercial banks and other permitted international remittances service providers in Kenya.
In the year 2011, remittance inflows to Kenya totaled US $ 891 million compared to US $ 642 million in 2010, a 39 percent increase over the 2010. In December 2011, remittances to Kenya amounted to US$ 85.2 million, which was 30 percent higher than the level in December 2010. In addition, the average remittances inflow in 2011 amounted to US$ 74.3 million up from US$ 53.5 million recorded in 2010. The 12 month cumulative average remittances flow has sustained an upward trend from the second half of 2010 (Table 1 and Chart 1).
Since December 2010, improved data collection techniques and proper classification of remittances by some commercial banks have contributed to this increase in remittances inflow. In addition, Government’s Savings Development and Infrastructure bonds issues and subsequent awareness campaigns led to increased Diaspora interest in investing through these formal channels over this period. Finally, the increased competition among money transfer service providers recently could have resulted in reduced transaction charges and thereby encouraging the use of formal remittances channels.
Table 1: Monthly Remittance Inflows ( 2004 to 2011 in US$ '000)
| Year |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
| January |
28,564 |
31,506 |
40,930 |
53,925 |
39,535 |
45,117 |
64,139 |
| February |
26,056 |
30,283 |
39,533 |
50,382 |
53,353 |
46,423 |
60,759 |
| March |
31,219 |
36,354 |
48,562 |
59,344 |
55,361 |
52,309 |
71,577 |
| April |
29,216 |
35,369 |
38,251 |
67,872 |
48,117 |
52,679 |
70,071 |
| May |
32,358 |
42,427 |
41,163 |
48,538 |
49,180 |
51,172 |
68,124 |
| June |
34,360 |
35,667 |
48,643 |
49,490 |
46,347 |
52,541 |
71,888 |
| July |
29,133 |
41,065 |
53,350 |
44,137 |
50,372 |
50,652 |
72,797 |
| August |
31,759 |
30,587 |
58,803 |
43,388 |
55,947 |
51,993 |
79,563 |
| September |
31,616 |
28,841 |
60,575 |
48,953 |
53,347 |
58,557 |
84,854 |
| October |
33,037 |
29,633 |
46,848 |
61,113 |
53,037 |
58,503 |
81,311 |
| November |
34,282 |
31,403 |
55,564 |
43,970 |
48,231 |
56,380 |
80,802 |
| December |
40,557 |
34,459 |
41,421 |
40,129 |
56,329 |
65,617 |
85,244 |
| Annual Total |
382,153 |
407,593 |
573,643 |
611,241 |
609,156 |
641,943 |
891,107 |
Source Markets for Remittances
North America and Europe as source regions for remittances accounted for 49.4 percent and 29.0 per cent of the total remittances in December 2011 (Table 2).
Table 2: Remittance Inflows from Source Markets (US '000) October - December
2011
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