NAIROBI, Kenya, Oct 15 – The amount of money sent by Kenyans living abroad rose by Sh1.02 billion ($8.5 million) last month, coming on the back of depressed inflows since April 2022.
Latest data from the Central Bank of Kenya (CBK) shows that money sent home from countries such as US and Canada increased from Sh37.59 billion ($310.5 million) in August to Sh38.49 billion ($318 million) in September.
In the last six months, Kenya’s diaspora inflows has been dropping, attributed to high inflation in America and Europe.
The last time the country recorded an increase in remittances was in March 2022, when Kenyans living abroad sent home Sh42.05billion, a 15.5 per cent growth compared to Sh36.7billion sent in February.
“The strong remittance inflows continue to support the current account and the foreign exchange market. The US remains the largest source of remittances into Kenya, accounting for 59 per cent in September 2022,” CBK says.
While remittances help boost the country’s forex reserves, they also support many livelihoods.
An analysis by WorldRemit showed education, healthcare, and household needs are the biggest beneficiaries of remittances in the country.
WorldRemit also said that Kenya was among the top 3-Africa countries leading in remittance inflows with the likes of Nigeria and 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 M-pesa.
CBK adds that remittance inflows rose to Sh38.5 billion ($318 million) last month from Sh37.5 billion (309.8 million) during a similar month last year, representing a 2.6 per cent increase.
“The cumulative inflows for the 12 months to September 2022 totaled (Sh484.3 billion) USD 4,001 million compared to (Sh427.3 billion) USD 3,530 million in the same period in 2021, an increase of 13.3 percent,” CBK said.
