In Summary
  • The US economy is seen gaining further momentum on favourable policies including prospects of tax cuts in 2018.
  • Stronger growth in the US is likely to help maintain the momentum in diaspora remittances, a key factor which helped keep the shilling largely stable against the greenback in 2017.

Dollar flows from Kenyans living abroad are expected to continue helping the shilling maintain its relative stability this year, analysts citing stronger growth outlook in the US say.

The US economy is seen gaining further momentum on favourable policies including prospects of tax cuts in 2018.

Global economists have in fact projected a growth of between 2.3 and 2.5 per cent compared to an estimated 2.2 per cent in 2017.

Stronger growth in the US is likely to help maintain the momentum in diaspora remittances, a key factor which helped keep the shilling largely stable against the greenback in 2017.

“We are expecting the dollar to go stronger in 2018 which will boost much more inflows from the US,” Churchill Ogutu, a senior research analyst at Genghis Capital said.
“But with not much investment opportunities in the US, it will sustain the dollar remittances from the US since returns here (in Kenya) are relatively higher.”

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