Diaspora remittances drop to Sh36.7bn in February

NAIROBI, Kenya March 19-Kenyans living abroad sent home Sh36.7billion in February, a 5.1 per cent drop compared to the Sh38.7billion sent in January 2022.

According to the latest Central Bank of Kenya(CBK) weekly bulletin, the drop is in line with seasonal factors.

In a similar month last year, total remittances were  USD260.3million(Sh29.7billion), representing a 23.5 percent increase which means Kenyans abroad sent more money this year.

“The cumulative inflows for the 12 months to February 2022 totalled USD 3,840 million(Sh439.14billion) compared to USD 3,155 million(Sh356.2bilion) in the same period in 2021, a 21.7 percent increase,” said CBK.

US remains the largest source of remittances into Kenya, accounting for 58 percent in February 2022.

Other significant source markets include the UK, Germany, and Canada.

Gulf states such as Saudi Arabia, United Arab Emirates, Qatar, and Bahrain have also emerged as important drivers of remittances, in line with the growing number of Kenyans immigrating to these countries in search of jobs.

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, sectors that tend to have a multiplier effect on development.