Data from the Central Bank of Kenya (CBK) shows that the amount of money sent home by Kenyans working abroad dropped in the month of August this year.
The data shows that 37.4 billion shillings was sent last month compared to 37.7 billion shillings in a similar period in 2021.
The inflows reported in August are the lowest, since June last year when the country received 306 million shillings.
CBK says diaspora inflows have been shrinking since January 2022 when the country posted a high of 338.7 million shillings.
The United States which is the largest source of remittances into Kenya contributed $187 million in August compared to $ 201 million in a similar month in 2021.
This year the remittances coupled with rebounding exports have been critical in keeping Kenya’s current account deficit stable with the gap standing at 5.1 per cent of Gross Domestic Product at the end of July.
CBK says this comes as the country is witnessing high inflation at 8.5 per cent with both mortgage and rest prices rising to above six per cent.
Meanwhile, the shilling dropped further against the greenback, exchanging at 120.41 on `6th of September compared to 120.28 on 13th of September.
The shilling has been dropping against major international currencies for almost 17 months now, shedding six per cent in value.