Remittance hits 6 percent in the first quarter of 2020

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In the first quarter of the year, the money sent by Kenyans abroad rose by 6.2 percent, which is among the projections reflecting a slowdown in the coming months as the coronavirus pandemic continues to affect the global economy.

The money remitted from January-March 2020 hit a near Sh75.6 billion, while that remitted last year in the same period was approximately Sh71.13 billion.

The flow of cash in January was $259.4 million (Sh27.7 billion). It slowed down by 15.6 percent in February to $219.0 million (Sh23.4billion) and rose again by 4.5 percent to $228.9 million (Sh24.4 billion) in March.

The growth in the first quarter of 2020 was much higher (6.2 percent) when compared to the remittance growth seen in 2019 of 3.8 percent over $641.5 million (Sh68.5 billion) over the same period in 2018.

Kenyans in abroad seem to send in more money to support their family and friends during these tough times of the coronavirus pandemic. So far, Kenya has reported 490 confirmed cases of corona while 173 have been able to recover fully, and 24 have lost their lives to the virus.

The government has implemented measures such as the 7 pm-5 am curfew, which has seen the 24-hour jobs affected. Layoffs have been witnessed as well the travel restrictions have seen many jobs stagger.

However, the inflow of cash from abroad have created a buffer for the local currency (shilling) against the dominant international currency. 

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About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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