Diaspora Remittance inflows in February 2023 totalled USD 309.2 million compared to USD 349.4 million in January, a decrease of 11.5 per cent.
The cumulative inflows for the 12 months to February 2023 totalled USD 4,026 million compared to USD 3,840 million in February 2022, an increase of 4.8 per cent.
Data from CBK indicate that the USA remains the largest source of remittances in Kenya, accounting for 59 per cent.
The remittance inflows continue to support the current account and the foreign exchange market.Central Bank of Kenya
Diaspora remittances help shore up the country’s foreign currency, which has come under pressure in recent months due to the rising dollar rate against the Kenyan shilling.
Remittances also provide support for numerous livelihoods. Additionally, they have a significant impact on development due to their allocation towards education, healthcare, and household needs, which have a multiplier effect.
Kenya is among the top three African countries in receiving remittances, with Nigeria taking first place and Zimbabwe following closely behind.
WorldRemit recognizes digitization as a crucial factor in the growth of remittance services and has partnered with local banks to enable direct transfers to accounts and M-pesa.
Read Also: Diaspora Remittances Hit KES 43.7 Billion in January