Diaspora remittances to Kenya surged by 19 per cent growth with over Sh300 billion received on the back of global economic recovery.
World Bank data shows that Kenya was the third largest recipient of remittances in Africa during the review period, falling behind Ghana and Nigeria.
The sector was a key source of support during last year’s pandemic when many people lost their sources of incomes due to Covid-19 containment measures. Remittances brings to Kenya triple the amount Kenya earns from horticulture, tea and tourism.
The cost of remittances, however, remains high despite recent improvements which Central Bank of Kenya (CBK) said have helped to boost inflows. Central Bank of Kenya (CBK) data shows that remittances rose by 20 per cent during the first nine months of 2021 compared to the same period last year.
The remittances for the period hit Sh301 billion up from Sh252.5 billion in the nine months to September 2020. The cost of sending money however remains high in Kenya due to the fact that diaspora citizens spend a huge chunk
The cost of sending money however remains high in Kenya due to the fact that diaspora citizens spend a huge chunk as transfer fees.
Sending money from Tanzania to Kenya costs a whopping 7.6 per cent while sending money from Tanzania to Uganda is the most expensive at 23 per cent.
Kenya’s rising remittances are backed by the migration of highly skilled people to the United States.
The report applauds the resilience of Kenya’s immigrant workers that have managed to keep inflows growing despite difficult economic conditions last year.