NAIROBI, Kenya, July 3 – Money sent to Kenya from Uganda increased to Sh3.3 billion in the five months to May this year, compared to a similar period last year, official data shows.
Data from the Central Bank of Kenya (CBK) shows that the amount grew by 100.82 percent from Sh1.64 billion in 2022
This is the right step for the country whose remittances have always been dominated by Western countries such as the US, Canada, and the United Kingdom, among others.
The strengthening of the Ugandan Shilling against the Kenyan unit might have also played into the growth, as the country’s currency has lost over 10 percent of its value against its neighbor.
For instance, one Kenyan shilling is now equivalent to Sh26 Uganda Ugandan shillings, down from about Sh30 last year.
Only last month, Kenyan expats living abroad sent home Sh49.32 billion, a 9.9 percent increase from Sh44.83 billion in April.
Inflows helped strengthen the country’s usable foreign exchange reserve to Sh1.04 trillion as of June 15, enough to cover 4.11 months of imports.
“This meets the CBK’s statutory requirement to endeavor to maintain at least 4 months of import cover,” the CBK said last month.
