Diaspora’s Increased Remittances in this Year’s First Quarter
Kenyans in diaspora have increased remittances in the first 3 months of 2018 compared to last year as they sent home Sh64.3 billion this year which shows growth in investment products for the diaspora.
According to a recent Central Bank report, compared to 2017s January-March, the transmittals have had an increase of 48.29 per cent from Sh43.4 billion.
A weekly market note by CBK quoted, “The improved performance reflects increased uptake of financial products by the diaspora and new partnerships between commercial banks and international money remittance providers.”
The diaspora major investment interest lies on real estate. As such, some Commercial banks leading in financial services have designed savings and investment products including mortgages to support Kenyans abroad achieve their goals in real estate.
Some of these banks are DTB, KCB, Co-op Bank and Equity who have gone a mile ahead to partner with money remittance companies and opening diaspora windows to tap payments from Kenyans working and living abroad.
KCB has recently focused particularly on Kenyans in Australia and United Arab Emirates(UAE) where the diaspora banking team went on a tour last month to expand their market abroad.
During the tour, Vincent Aberi, KCB head of diaspora banking observed that reaching out to the Kenyans abroad will encourage them to tap in investment opportunities back home.
A remark by a financial research analyst highlighted that remittances have played a major role in strengthening of the shilling in 2018 as they top foreign exchange earnings and collectively brought in more than two per cent of Kenya’s real GDP (gross domestic product) in 2017.