CBK (Central Bank of Kenya) Weekly Statistical bulletin has reported that diaspora remittance inflows to Kenya in May 2022 totalled US$ 339.7 million compared to US$ 315.8 million in May 2021, a 7.6 per cent increase.
According to the CBK report, the cumulative inflows for the 12 months to May 2022 totalled US$ 3,992 million compared to US$ 3,365 million in the same period in 2021, an increase of 18.6 per cent.
CBK says this strong remittances inflow continues to support the current account and the stability of the exchange rate.
The US remains the largest source of remittances into Kenya, accounting for 57% in May 2022.
CBK BULLETIN SHOWS CONTINUED WEAKENING OF THE KENYA SHILLING
The CBK also shows a continued weakening of the Kenya Shilling against the US$. For instance, the local unit exchanged against the greenback at KSh 117.29 on June 16th compared to KSh 117.01 per US dollar on June 9th 2022.
However, the Kenya Shilling has gained against the Sterling pound from KSh 146.91 on June 3rd 2022, to KSh 141.39 on June 16th 2022. The local unit has also gained against the Euro from an indicative mean rate of KSh 124.97 on 3rd June 2022 to KSh 122.47 on June 16th 2022.
CBK reports that Inflationary pressure persisted in the week ending June 16.
During the week, the US Federal Reserve and the Bank of England raised their benchmark interest rates by 75 basis points and 25 basis points, respectively. Major financial markets remained volatile.
International oil prices declined during the week ending June 16th 2022. Murban oil prices fell to US$ 118.24 per barrel, compared to US$ 122.39 per barrel on June 9th 2022.
CBK figures indicate that Kenya’s public debt has been rising from 7,339.71 Billion in March 2021 to KSh 8,401.33 in March 2022. This is against efforts by National Treasury to get parliament to approve raising the country’s debt ceiling to accommodate the rising debt load.