Remittance inflows, a major source of foreign currency income in Kenya, fell by 0.8 percent to US$310.5m in August 2022 from US$312.9m in August 2021.
However, the cumulative inflows for the 12 months to August 2022 totalled US$3,992m, compared to US$3,481m in the corresponding period in 2021, marking an increase of 14.7 percent. According to the Central Bank of Kenya, the US remained the largest source of remittances into Kenya, accounting for 58 percent in August 2022. The August decline in remittance inflows could place additional pressure on the Kenyan shilling, which has weakened north of 6 percent YTD against the US dollar as demand for dollars has continued to outstrip supply.
