NAIROBI, Kenya, Jul 25 — Migrants around the world have reduced their spending to be able to send remittances back home amid rising inflation, a new survey has shown.
According to the survey by World Remit, 49 per cent of migrants reported that they eat out less while 46 per cent save on day-to-day expenses so as to be able to maintain their financial obligation to family and loved ones back home.
Further, 28 per cent reported limiting social gatherings to save money, and 25 per cent opt for public transportation rather than driving themselves.
“Migrants’ resilience and commitment to their loved ones back home has proven to be vital, especially in a period where household expenses are increasing around the world,” said Jorge Godinez Reyes, Head of the Americas, WorldRemit.
“This latest study proves that even during times of financial instability, many migrants are making conscious adjustments to their daily lives to maintain the regular flow of remittances to families and loved ones back home.”
In the findings, 78 per cent of remittance senders agree that the cost of living has increased for themselves while 75 per cent of respondents said that the costs of living for those they send money to has increased since the start of the year.
According to the survey, daily expenses, healthcare and educational support continue to be major reasons for sending remittances.
The resilience of remittances is welcome news for Kenya considering money sent back home by Kenyans in the diaspora represents one of the top sources of forex for the country, surpassing tourism, tea, and horticultural exports in recent years.
Data from the Central Bank of Kenya (CBK) shows that remittances reached USD 3.71 billion (Sh421.98 billion) in 2021, up 20.2 percent from USD 3.09 billion (sh351.46 billion) a year earlier.
WorldRemit notes that the continued shift to digital remittance technologies has made it more convenient and affordable for those in the diaspora to send money back home.
The London-based digital remittances firm also noted that Kenya is among the top 3 countries in Africa where WorldRemit users globally send money to.
The company processed transactions to Kenya worth 170 million GBP (approximately Sh24.47 billion) as of June 1 2022.
This figure puts Kenya at par with Zimbabwe and second only to Nigeria, where WorldRemit users globally sent 270 million GBP (approx. Sh38.86 billion).
