Remittance Inflow to Kenya Rises to 3% of GDP
Total remittance inflow to Kenya has increased tremendously in recent years, with total remittances in 2021 reaching a record USD3.718 billion, according to a survey conducted by the Central Bank of Kenya (CBK).
Kenyan monetary authority said in a report that this surpassed the previous record of USD3.094 billion set in 2020. It said these amounts are equivalent to approximately 3 per cent of Kenya’s gross domestic product (GDP).
However, only inflows through formal channels – authorized international remittance service providers in Kenya or commercial banks—are included in the reported inflows, which exclude remittances through informal channels and in-kind remittances.
Kenya’s apex bank said the survey represents an additional step in the effort to improve statistics on remittances and in the understanding of the landscape for remittances more generally.
“The key findings of the Survey include: remittances are directed at family members, who are largely self-employed, unemployed, or students.
“About half of the total remitted was allocated to investment in real estate -land and buildings- for recipients, mortgage payment for senders, and purchase of food and household goods”.
It noted that the survey confirmed the importance of mobile money operators and money transfer companies, in addition to banks, as the main channels for cash remittances.
Read: Nigeria Sees Better Foreign Currencies Inflow from Diaspora –Report
Further, the Kenyan diaspora prefers digital service providers due to convenience, promptness, and ease of access, the report added. On average, the Central Bank of Kenya said recipients receive remitted funds on the same day, reflecting the efficiency of these channels.
However, it noted that key problems that were identified included the high cost of remitting cash and the inadequate information on investment opportunities in Kenya for the emitters. The Survey targeted Kenyans living abroad who had sent remittances in 2019.
The respondents were reached with the support of the Ministry of Foreign Affairs and especially the Kenyan missions abroad, diaspora organizations, and other stakeholders. It was noted that The Survey was conducted through an online questionnaire and attracted 1,321 respondents. #Remittance Inflow to Kenya Rises to 3% of GDP
