NAIROBI, Kenya Dec 17 – Kenya has on Friday marked the International Migrants Day celebration, with the Central Bank of Kenya (CBK) projecting record high Diaspora remittances in December.
CBK recorded remittance inflows of Sh36 billion in November with the number expected to increase and hit an annual record in December.
Additionally, the country recorded Sh341.3 billion sent as Diaspora remittances the 10 months through 2021.
According to the Ministry of Foreign Affairs, Diaspora remittances from an estimated 3-4 million Kenyans living abroad as migrants, has over the years grown to be a major contributor to the country’s Growth Domestic Product.
Remittances now rival other major sources of Forex such as tourism, tea, and horticultural exports.
CBK on Monday revealed that the United States remains the largest source of remittances to Kenya, accounting for 67.3 per cent of cumulative cashflows in November.
Other significant source markets include the United Kingdom, Germany and Canada.
Additionally Gulf States such as Saudi Arabia, United Arab Emirates, Qatar, and Bahrain have also emerged as important drivers of remittances, in line with the growing number of Kenyans immigrating to these countries in search of jobs.
On the other hand, Tanzania, Uganda, and South Africa lead as the top African source markets for remittance inflows into Kenya.
According to an analysis done on Friday by global payments firm, WorldRemit, Diaspora remittances in Kenya are mostly used in supporting education.
“Over the past five years we have conducted several studies to understand the role remittances play in supporting the welfare of households. Our findings indicate that Kenyans abroad invest significantly in the education of the country’s future generations,” said Sharon Kinyanjui, Director Europe Middle East and Africa Receive Markets at WorldRemit.
