August remittances to Kenya increase by 20.3pc

Due to the huge sums involved, remittances are now recognised as important contributor to Kenya’s growth and development.

Kenyans living in the diaspora have contributed a total of US$ 936,036,000 since January 2014, data from the Central Bank of Kenya (CBK) shows.

CBK says the highest contribution so far was recorded in August, with remittances totaling US$ 128,826,000 recorded while the lowest received was in February at US$ 110,421,000.

The source of the improvement in August 2014 is tracked to increased contributions from North America, which accounted for 50pc and where inflows increased by 22pc to USD 64mn.

In total, August 2014 diaspora contributions were up 23pc to USD 128.8mn compared with USD 107mn in a similar period last year.

The Central Bank, in its monthly survey on remittance inflows says remittance from Europe and the rest of the world increased marginally by 0.47pc to USD 31.5mn and 0.56pc to USD 33.3mn respectively in August 2014.

Remittance is money sent by people living in a foreign land to their home countries.

Due to the huge sums involved, remittances are now recognised as important contributor to Kenya’s growth and development.
CBK conducts a survey on remittance inflows every month through the formal channels that include commercial banks and other authorised international remittances service providers in Kenya.

Meanwhile, CBK Governor Prof. Njuguna Ndung’u has been named the 2014 sub-Sahara Africa Central Bank Governor of the year by Emerging Markets (EM) Magazine.

The award is given by EM each year, in recognition of the achievements of leading policy makers in emerging markets.
EM is an international news magazine reporting on economic analysis and commentary on economic policy, international economics and global financial markets, with a special focus on the emerging world.

Governor Ndung’u was nominated by a panel of renowned public and private sector economists, analysts, bankers, investors and other experts, in recognition of his stewardship of CBK that has inspired faith and confidence in central bank policy among key stakeholders.

CBK Governor Prof. Ndung'u. His stewardship of CBK has earned him accolades as the 2014 sub-Sahara Africa Central Bank Governor of the year by Emerging Markets (EM) Magazine
CBK Governor Prof. Ndung’u. His stewardship of CBK has earned him accolades as the 2014 sub-Sahara Africa Central Bank Governor of the year by Emerging Markets (EM) Magazine

EM said Prof. Ndungu’s tenure at the Central Bank has been characterised by monetary policy and financial sector policies that have contributed to a supportive environment to growth.
In addition, the credibility of monetary policy has been enhanced by increased transparency in monetary policy formulation and implementation.

The award particularly recognises the Governor’s role in spearheading monetary policy measures which have been credible in fighting inflation and maintaining price stability during an era of global economic turbulence, championing financial inclusion initiatives and banking sector innovations.

In the citation, EM said “…this award signals the confidence you have inspired in your key stakeholders and reflects their faith in central bank policy under your leadership.’