NAIROBI, Kenya Nov 12 – A new survey conducted by Samawati Capital Partners and Blue Inventure Limited has revealed that in Kenya migrant workers send on average Sh22,360 or Sh33, 540 home every one or two months.
The remittances represented 15 percent of what they earned on average and made up as much as 60 percent of a household’s total income for millions of families.
The study conducted between April-June 2021, revealed that the money sent was primarily used to tap into investment opportunities in Kenya.
“These amounts can be interpreted to be used to meet immediate household needs such as food, medical expenses, school fees, and other household expenses. They are also estimated to be used for opportunistic savings and investment opportunities back in the country,” the report said.
The survey carried out among 211 respondents further revealed that first-generation migrants (individuals who were born in Kenya and afterward migrated to their current countries of residence) sent the most money back home.
“This is due to the fact that the generation enjoys closer relational ties with relatives back home than the other generations,” the report noted.
The report further revealed that remittances in the first 3 months of 2021 grew by 20 percent from the previous year and amounted to USD 829 million, the highest amount ever recorded in any quarter.
The growth was attributed to financial innovation among migrants and the steady increase in their earnings that expanded their ability to remit increasingly more funds.
“Some of the key reasons driving the growth are the growth of immigrant populations (labor mobility) as well as increased remittances during the crisis which has continued to counter the decrease in generational remittances,” it added.
Remittances in Kenya have risen to become the biggest source of foreign exchange, ahead of tourism, tea, coffee, and horticulture exports.
The Central Bank of Kenya indicated that Kenyans in the diaspora continue to make significant contributions to the socio-economic development of the country through the remittances and investments they send to Kenya.
Of the total amount sent yearly, the top three countries from which remittances were sent were; the USA accounted for 53.9 percent, the United Kingdom 7.4 percent, and South Africa at 6.3 percent.
In the year 2020, remittance inflows grew despite the impact of COVID-19 in the source countries.
According to CBK, remittance inflows rose by 10.7 percent from USD 2.796 billion in 2019 to a record high of USD 3.094 billion in 2020, accounting for 3 percent of GDP.
The regulator has projected that diaspora inflows into Kenya could rise to USD 3.4 billion in 2021 compared to USD 3.09 billion recorded in 2020.
