Banks in the country have seen an increase in foreign currency deposits which in the month of June increased to sh60 billion.
This growth has been attributed to an increase in the amount of remittances by Kenyans in the diaspora as well as the tax amnesty window for assets that are in foreign lands.
According to the Kenya National Bureau of Statistics, in end June the deposits had risen to sh574.7 billion down from sh514 billion. This growth set a new standard in the industry as it was the first time foreign currency surpassed the sh500 billion point.
With the continued call by the Central Bank of Kenya for Kenyans living abroad to invest more back at home and the efforts seem to be bearing fruits after all.
“Banks have introduced new products targeting the diaspora, which have been very effective. The diaspora have also responded favorably and consequently the numbers in remittances have been much higher,” said CBK governor Patrick Njoroge.
The tax amnesty which was to expire in July 30 this year at the end of the 2017/18 fiscal year was extended by Treasury CS Henry Rotich for another one year in order to encourage those with undeclared cash and assets stashed in foreign countries bring them home.
The government also relaxed its hard stance on declaring how the assets were acquired so as motivate those owning the assets to comply with call but the CS was categorical that this did not cover proceeds of corruption.