WorldRemit now projects that Kenyans living and working abroad will send home more money as schools reopen and the approaching December festive season.
This is after a slight drop in the month of August.
This is when diaspora remittances to the country shrunk by 7.1 percent on covid.
Diaspora Inflows Data
Central Bank of Kenya data shows Kenyans in the diaspora sent home $312million (Sh34.4billion) in August.
This is a drop from $336.7 million (Sh37.1billion) sent in July according to The Star.
Despite the monthly drop, this was a 14.2 percent increase when compared to August 2020.
This is when Kenyans abroad sent home $274.1million (Sh30.2billion).
The cumulative inflows for the 12 months to August 2021 totaled $3,481 million (Sh383.6billion).
This is compared to $2,921 million (321.8billion) in the same period in 2020, a 19.2 percent increase.
WorldRemit projects that most of the monies expected to be sent home will go towards education, healthcare, and household needs, mainly over the festive season.
“We expect to see high transaction volumes during the back-to-school seasons with the US remaining a key source of inflows,” said Sharon Kinyanjui, WorldRemit’s Director for Europe Middle East and Africa Receive Markets.
According to the firm, the emergence of digital payments and concepts such as mobile wallets has brought more people into the financial system.
Firms that have championed a digital-first model have benefited from this trend.
“We continue to grow in Kenya and across the region in part thanks to our digital payout channels.
Although users can still pick cash at selected locations, more of them are opting for mobile and bank payout options,” said Kinyanjui.
The firm, which has a presence in more than 150 countries, 2020 processed over 50 million customer payments worth approximately $10 billion (Sh1.08 trillion) in total.
Last year, it lowered transaction fees for international transfers in over 450 of its larger corridors in Africa.
This allowed customers to send more to family and friends via the mobile app and website.
This price drop represented the largest pricing reduction in terms of the number of corridors for the business.
Apart from the US, other key market sources of remittances to Kenya are the UK, Germany, and Canada.