Remittances to Kenya defy inflation hit Sh497bn in 2022 - Capital Business
Connect with us

Hi, what are you looking for?

Kenyans in the diaspora continue to make significant contributions to the socio-economic development of the country through the remittances

Kenya

Remittances to Kenya defy inflation hit Sh497bn in 2022

NAIROBI, Kenya, Jan 15 – Kenyans living abroad sent home a record high of ShSh497.1 billion in 2022, an 8.3 per cent increase compared to the Sh458.9billion sent in 2021, defying global economic headwinds such as the Russia-Ukraine war.

A recent survey by WorldRemit revealed that at least half of Kenyans living abroad have taken up side hustles since the Covid-19 pandemic struck, to sustain remittances back home. This follows inflation in major global economies.

Even so, the country’s remittance inflows remained strong in December 2022 at Sh44.1billion, a 3.4 per cent growth from Sh42.6 billion in November.

This underlies underlying the defiant resilience of the inflows at a time when the global economy was experiencing a massive meltdown.

“Remittance inflows continue to support the current account and the foreign exchange market,” said the Central Bank of Kenya(CBK).

The apex bank noted that the US remains the largest source of remittances to Kenya, accounting for 55.5 per cent in December.

Another survey by WorldRemit revealed that 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 is 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 the direct sending of money to accounts, and M-pesa.

Advertisement. Scroll to continue reading.
Advertisement

More on Capital Business

Top Story

NAIEOBI, Kenya, Feb 29 – Kenya’s inflation in the month of February dropped to 6.3 percent from 6.9 percent in January after fuel, electricity,...

World

BERLIN, Germany, Feb 3 – Germany experienced a decrease in inflation in January, as consumer prices increased by 2.9 percent, down from December’s 3.7...

World

BRUSSELS — Annual inflation in the eurozone recorded a slight decrease in January, going down to 2.8 percent from 2.9 percent in December, a...

Kenya

NAIROBI, Kenya, Jan 31 – Kenya’s inflation surged slightly to 6.9 percent this month, buoyed by rising costs of transport, housing, electricity, and food....

Africa

JOHANNESBURG, Jan. 24 (Xinhua) — South Africa’s inflation rate continued to fall in December last year, primarily driven by a reduction in food prices,...

Kenya

NAIROBI, Jan. 19 (Xinhua) — Kenya’s diaspora remittances hit 4.19 billion U.S. dollars in 2023, compared to 4.028 billion dollars in 2022, an increase...

World

VIENNA, Jan. 17 (Xinhua) — Austria’s annual inflation stood at 7.8 percent in 2023, lower than the 8.6 percent reported the year before but...

Kenya

NAIROBI, Kenya, Jan 4 – Kenya is keen on supporting labour migration to increase remittances into the country. Labour and Skills Development Principal Secretary...