Diaspora remittances hit Sh38.5billion in June, a 3.2 per cent drop compared to the Sh39.8billion sent in April.
According to the Central Bank of Kenya (CBK), the US remains the largest source of remittances in Kenya, accounting for 59 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 305.9 million(Sh36.16billion), a 6.6 per cent increase which means Kenyans abroad sent more money this year. Consequently, the cumulative inflows for the 12 months to June 2022 totalled USD 4,012 million compared to USD 3,383 million in the same period in 2021, an increase of 18.6 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, which tend to have a multiplier effect on development.
The company also noted that Kenya is among the top 3 countries in Africa in receiving diaspora 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.
Read also; CBK Reports a 7.6% Rise in Diaspora Remittances to $ 339.7m in May.
