Diaspora Inflows Withstand COVID-19 Jitters to Record Growth
Kenyans in Diaspora remit Kshs. 32 billion ($299.3 million) month of April as inflows continue to withstand covid19 jitters recording a record higher.
Data from the Central Bank of Kenya (CBK) indicate that April year-on-year inflows increased 43.7% from Kshs. 22.3 billion registered during the same month in 2020.
The increase is attributed to increased business activities globally as the world slowly recovers from the social-economic impact of Covid-19.
According to the data, Kenyans in diaspora sent home 2.9% higher than $290.8 million remitted in March this year. Notably, Kenyans in the US contributed to 57.2 percent of the remittances.
The other top source countries were: UK (11.2 percent), Saudi Arabia (four percent), Canada (2.9 percent), and Australia (2.9 percent).
According to CBK, cumulative inflows in the 12 months to March 2021 totaled Kshs. 354 billion ($3,308 million) compared to Kshs. 299.7 billion ($2,801 million) in the same period in 2020, an 18.1% increase.
Currently, diaspora remittances remain Kenya’s top forex earner after agriculture exports, and tourism earnings being affected by the pandemic.
In a just-concluded anonymous diaspora remittance survey, the Central Bank of Kenya sought to find challenges faced by Kenyans while sending money back home, how the recipients use the remittances, and investment opportunities back home.
Labour Cabinet Secretary Simon Chelugui over the weekend stated that the government is set to streamline global labor relations as it targets to earn Kshs. 700 billion in remittances from over four million citizens working abroad.
While speaking in Eldoret on Sunday, Chelugui added the government is working to address the lack of bilateral labor migration agreement with various countries hosting Kenyans.
The Labour CS stated that the government plans to send attaches to some of the key countries for a survey and ensure Kenyans are not subjected to poor pay and frustrations abroad. Read: COTU Breaks Silence on Kenyans Being Tortured in Saudi Arabia (USD1= Kshs.107)