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Money sent home by Kenyans in Uganda doubles to Shs86.2b
Data from the Central Bank of Uganda indicates that Uganda is now Kenya’s fifth largest source of diaspora remittances. Photo / File
What you need to know:
- In the five months to May, Kenyans working in Uganda sent home $23.46m, becoming Kenya’s fifth source of remittances
Kenyans working in Uganda sent home $23.46m (Shs86.23b) in the five months to May, which was more than double the amount reported in the same period last year.
The growth in remittances by Kenyans, data indicates, places Uganda among the fastest growing sources of diaspora inflows to East Africa’s biggest economy at a time when remittances from top global sources have slowed down.
During the period, according to data from the Central Bank of Kenya, remittances from Uganda into Kenya doubled from $11.68m in the same period last year to $23.46m, which represented a 100.82 percent increase.
The remittances were largely boosted by monthly inflows of $8.85m in May which catapulted Uganda to become the fifth largest source of Kenya’s diaspora remittances after US, Saudi Arabia, UK and Germany, according to data from the Central Bank of Kenya.
It was not immediately clear how much Ugandans working in Kenya sent home in the same period under review.
UN data estimates at least 620,000 Ugandans are formally working out of the country. However, the data does not indicate the number of people working in which country.
Bank of Uganda has not published remittance data for over three years, but previously data indicates that the largest portion of Uganda’s remittances comes from Europe, the Americas and lately Middle East.
The Central Bank of Kenya does not explain the cause of the surge in remittances from Uganda, but the Kenya Diaspora Alliance, noted that strengthening of the Ugandan shilling against Kenya’s was part of the main drivers of the inflows.
“The Uganda shilling has gained not only on the [Kenyan shilling]. For Kenyans with savings in Uganda, this is the right time to repatriate,” the Kenya Diaspora Alliance, the lobby which draws membership from Kenyans abroad, was quoted by Business Daily.
The Kenya shilling has depreciated against the Uganda shilling falling from a high of Shs30 last to an average of Shs27.
Bank of Uganda yesterday quoted the Kenyan unit at Shs26.13 buying and Shs26.20 selling, which was 13.39 percent weaker than the Shs30.11 quoted as of end of last year. The Kenya unit remains fragile, in and outside Uganda, weakened by panic buying as traders seek to exit its position on the back of substantial losses in value.
Uganda remains one of the biggest trade partners with Kenya.
During the period ended January, Bank of Uganda data indicates, East African Community is the largest recipient of Uganda’s exports in January 2023, accounting for 63.0 percent of exports receipts.
