February 27, 2008: The fate of foreign exchange remittances from Kenyans abroad — a crucial economic revenue stream— hangs in the balance because of political uncertainty.
Although Central Bank figures show a month-on-month improvement in volumes from $41.4 million (Sh2.9 billion) in December before post-election violence broke out to $53.9 million (Sh3.7 billion) last month, analysts say foreign inflows were largely dependent on a speedy resolution of the political standoff.
The cash remittances have recently helped to stabilise the shilling’s exchange rate and provided a source of investment funds.
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I think the Kenyan government is doing the right thing by putting the diaspora bonds on the top of its priority list. These bonds are going to be of immense help and can inspire other African countries too which also receive a considerable part of remittances from countries like the US and other European countries. As far as the economy is concerned I think there is still time for it to emerge as a prominent one in the continent.
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