In January, Kenyans working and living abroad sent home KES 43.7 billion, a 3.2% rise in remittances compared to the KES 42.4 billion they sent during the same month in the previous year.
According to the Central Bank of Kenya(CBK), the US remains the largest source of remittances into Kenya, accounting for 58.5 per cent of the inflows in January.
“The remittance inflows continue to support the current account and the foreign exchange market,” said CBK in its weekly bulletin.
The cumulative inflows for the 12 months to January 2023 totalled USD 4,039 million compared to USD 3,778 million in January 2022, an increase of 6.9 per cent.
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.
According to world remit, Education, healthcare, and household needs are the main uses of remittances in Kenya, which tend to have a multiplier effect on development.
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.