Cash inflows wired by Kenyans living and working in Australia jumped 71.1 percent during the first three months of this year to hit $56.03 million up from $32.7 million in a similar period last year, at a time the overall remittances grew 2.2 percent to $1.23 billion (Sh158.9 billion).
Official data from the Central Bank of Kenya (CBK) indicates that during the period under review, Australia’s inflows were the fastest growing among Kenya’s top five sources, with UK’s dipping at the steepest pace of 30.2 percent to $78.4 million down from $112.4 million in the first quarter of last year.
Remittances from the UK fell alongside those from Saudi Arabia which shrunk 2.7 percent to $98.7 million down from $101.4 million.
Germany, which in May last year inked a deal on streamlining labour migration rules with Kenya, posted the second-largest growth amongst the top five sources of diaspora remittances.
Money sent by Kenyans from Europe’s largest economy rose 7.1 percent to $46.5 million up from $43.4 million last year.
The US remains by far the largest source of diaspora cash inflows to Kenya, with its contribution standing at 53 percent as at close of March this year having garnered a marginal rise to reach $652.5 million during the three-month period.
The contribution of the US to the remittances pool was, however, a contraction from the 56 percent share it held in March last year, with the reduction coinciding with the assumption of office of President Donald Trump who came in with a raft of radical anti-immigrant policies including threats of mass deportation.
This contributed to the slowed growth of 2.2 percent in overall diaspora inflows during this year’s first quarter, compared to an 18.8 percent increase witnessed in a similar quarter last year when the inflows rose to $1.21 billion.
Earlier, soaring energy and food prices as a result of supply chain disruptions that emanated from Russia’s brutal invasion of Ukraine in February 2022 had pushed up living costs in the US and Europe to decades-high, eating into disposable income that Kenyans in those countries tap to assist dependents back home.
Since 2015, remittances from abroad have remained the largest source of foreign cash flows into Kenya ahead of tourism, foreign direct investment (FDI), and the export of agricultural products such as tea and coffee.
President William Ruto has, since taking power in September 2022, pledged to negotiate bilateral labour deals with developed economies in a bid to create jobs for growing skilled and semi-skilled Kenyan youth abroad.
