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Kshs 197 Billion Remittances 2017 & Diaspora University Town Finance

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Report on remittances from Daily Nation Report on remittances from Daily Nation

Reports from Central Bank of Kenya (CBK) published show Diaspora remitted Kshs 197 billion about $1.95 billion dollars in the year 2017. Most of this amount came from the Diaspora in North America, U.S and Canada, who sent Kshs Sh100 billion ($1 billion) about 51% of the remittances.

Diaspora University Town project is eyeing the growing remittances. The remittances are reported to go 75% toward school fees, food and other necessities. However, once remittances are used for the primary purpose the remittances will increase the bank deposits as the dollars buy shillings that then circulate in Kenya economy.

The Kshs 197 billion can also be said to have increased the bank deposits with the same amount. Bank deposits then increase loan advances with about 80% of the money available lent out. This means an increase in lending of Kshs 150 billion was realized just in 2017. In the next 5 years (2018 - 2022) the loan advances capital through Kenya Banks that results from the Diaspora remittances could be over Kshs 750 billion. 

Diaspora University Town - Master Development Plan is set-up to tap these growing remittances that become loan capital. This achieved as thousands of houses are built in Diaspora University Town and close to 500 SMEs (Small Medium Enterprises), established. 

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