In 2020, Kenyans living abroad defied the pandemic to send Sh337 billion ($3bn) home, according data released by Central Bank of Kenya (CBK). The figure represents a significant increase from the Sh305 billion recorded in 2019.
“This remarkable growth of remittances has been supported by financial innovations that provided Kenyans in the diaspora more convenient channels for their transactions,” read a statement from CBK.
Here Is What You Need To Know
- According to the data from CBK, the month of December 2020 recorded the highest diaspora remittances to the tune of Sh32.5 billion, while remittances slowed the lowest in April and May 2020.
- The release of the official figures follows a mooted plan by CBK to introduce a Diaspora Remittances Survey in partnership with Kenya National Bureau of Statistics, the Ministry of Foreign Affairs and other stakeholders. The survey, which will be conducted in February and March, is targeted at collecting valuable information on remittance inflows to Kenya, the efficiency and cost of alternative remittance channels. It will also help in informing Kenyans in the diaspora on the investment opportunities in the country and the usage of remittances received.
- Nigeria leads Africa’s remittance market, also doubling as the sixth-largest beneficiary among low- to middle-income countries, with an estimated $23.8 billion (Sh2.5 trillion) received in 2019 alone.
- Ghana and Kenya came a distant second and third in sub-Saharan Africa, with $3.5 billion (Sh374 billion) and $2.8 billion (Sh299 billion) received up to September 2019.
- Notwithstanding the increased foreign remittance, the Kenyan shilling has, however, continued to weaken under the blows of Covid-19.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
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