Sunday September 18, 2022
By SUSAN NYAWIRA
NAIROBI, Kenya, Sep 17 – Kenyans living abroad sent home Sh37.4 billion, a 2.1 per cent decline compared to the Sh38.2billion sent in July.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.
This is the fifth consecutive decline in remittances sent amid global inflation.
A recent report by World Remit revealed that migrants around the world have had to reduce their spending to be able to send remittances back home as inflation bites.
“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 312.9 million(Sh37.7billion), a 0.8 per cent decrease which means Kenyans living abroad sent less money this year.
Despite the year-on-year decline, the cumulative inflows for the 12 months to August 2022 totaled USD 3,992 million compared to USD 3,481 million in the same period in 2021, an increase of 14.7 percent.
Remittances not only represent an important source of forex but also support many livelihoods.
According to an analysis by 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 M-pesa.