Kenyans living abroad sent home Sh37.4 billion, a 2.1 per cent decline compared to the Sh38.2billion sent in July– 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.
According to the Central Bank of Kenya(CBK), the US remains the largest source of remittances in Kenya, accounting for 58 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 money sent home was 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 totalled USD 3,992 million compared to USD 3,481 million in the same period in 2021, an increase of 14.7 per cent.
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 is 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.
