• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Kenyan shilling under focus as remittances fall

Kenyan Business Feed by Kenyan Business Feed
Fake New Currency: Three people in Embu   caught with 100k fake banknotes
Share on FacebookShare on Twitter
New currency notes

The Kenyan shilling is in the spotlight as diaspora remittances fell for a second straight month amid expected pressure from the demonetisation of the old Sh1,000 note that has raised liquidity in the market.

Diaspora remittances, which account for the largest share of Kenya’s foreign inflows, have grown significantly in the last two years, offering an important bulwark for the shilling against the dollar.

They have however been on a slide in July and August following the expiry of the tax amnesty offered by the Treasury to Kenyans holding wealth abroad to repatriate it home in June.

“Remittance inflows for August stood at $214 million (Sh22.2 billion) compared to $224 million (Sh23.3 billion) in July 2019, reflecting a decline of 4.5 percent,” the Central Bank of Kenya (CBK) said in last week’s market bulletin.

Cumulative inflows for the first eight months of the year rose slightly from $1.809 billion (Sh187.8 billion) in 2018 to $1.888 billion (Sh196 billion), reflecting the high remittances in the first half of this year.

The slower flow of dollars comes at a time when they are most needed given the pressure the shilling is experiencing partly due to demonetisation and rising oil prices due to geopolitical tensions in the Middle East.

Commercial banks were trading the shilling at an average of 103.80 Monday afternoon, compared to Friday’s closing average of 103.70 units to the greenback.

The home stretch to the deadline of demonetisation of the Sh1,000 note this week is expected to drive the demand for dollars, and those already holding hard currency becoming reluctant to part with it.

The market has been experiencing excess liquidity, forcing the CBK to mop up large amounts in open market operations.

On Monday, the CBK was in the market for Sh60 billion in seven-day repurchase agreements, managing to mop up Sh40.05 billion from banks at an average rate of 8.98 percent.

The CBK also has the option of falling back on dollar reserves should the exchange rate exhibit signs of volatility.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Tags: CBKDiaspora RemittancesKenyan Shilling
Kenyan Business Feed

Kenyan Business Feed

Recommended.

Safaricom pays out first special dividend in year of record profit-making – Citizentv.co.ke

May 4, 2019
IFC injects Sh200m into mortgage firm

IFC injects Sh200m into mortgage firm

June 6, 2019

Subscribe.

Trending.

Safaricom’s SIG Forum empowers SMEs with branding insights from 3Verse Kenya, showcasing award-winning campaigns and inclusive business support.

Safaricom’s SIG Forum Empowers SMEs as 3Verse Kenya Shares Award-Winning Branding Strategies

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025
PLP and Safaricom Graduate 300 Youth in Push for Digital Talent Development Across Kenya

PLP and Safaricom Graduate 300 Youth to Boost Kenya’s Digital Talent Pipeline

June 23, 2025
Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF