NAIROBI, Kenya August 20 — Kenyans living abroad sent home Sh38.2billion in July, a 0.7 per cent drop compared to the Sh38.5billion sent in June.
According to the Central Bank of Kenya(CBK), the US remains the largest source of remittances into Kenya, accounting for 58 per cent in the period.
“The strong remittances inflows continue to support the current account and the stability of the exchange rate,” said CBK in its weekly bulletin.
In a similar month last year, total remittances were USD 336.7 million(Sh40.3billion), a 5.1 per cent decrease which means Kenyans living abroad sent less money this year amid elevated global inflation.
The cumulative inflows for the 12 months to July 2022 totalled USD3,995million compared to USD 3,442 million in the same period in 2021, an increase of 16.1 per cent.
Remittances not only represent an important source of forex but also support many livelihoods.
According to an analysis by global payments company, WorldRemit, education, healthcare, and household needs are the main uses of remittances in Kenya, sectors that tend to have a multiplier effect on development.
The company also noted that Kenya among the top 3 countries in Africa in receiving remittances, Nigeria came first followed by Zimbabwe.
Digitization remains a key driver for the growth of remittance services, according to WorldRemit, which has partnered with local banks, allowing direct sending of money to accounts, and Mpesa.
