NAIROBI, Kenya Feb 19-Diaspora remittances to Kenya shrunk slightly in January dropping by 3.4 percent compared to December 2021, the Central Bank of Kenya has revealed.
According to the CBK weekly bulletin, remittance inflows totaled USD338.7 million(Sh38.5billion) in January compared to USD350.6 million(Sh39.8billion) in December last year.
CBK noted that the drop was in line with seasonal factors.
In a similar month last year, total remittances were USD278.3 million(Sh31.6billion), a 21.7 percent increase which means Kenyans abroad sent more money this year.
The cumulative inflows for the 12 months to January 2022 were USD 3,778 million from USD 3,113 million in 2021, a 21.4 per cent increase.
US remains the largest source of remittances into Kenya, accounting for 63.6 per cent in January 2022.
Other significant source markets include the UK, Germany, and Canada.
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.
Tanzania, Uganda, and South Africa lead as the top African source markets for remittance inflows into Kenya.
Remittances not only represent an important source of forex but also support many livelihoods.
Education, healthcare, and household needs are the main uses of remittances in Kenya, an analysis by global payments company, WorldRemit, indicates, sectors that tend to have a multiplier effect on development.
