Diaspora remittances increased by 11.4% to USD 221 million in March from USD 199 million in February according to Central Bank Data.
Data by the Central Bank of Kenya (CBK) shows that the 12-month cumulative inflows increased to KSh274.84 billion in March this year from KSh217.7 billion in March last year, reflecting a 26% growth.
“North America remained the main source region for the remittances, accounting for 53 percent of the total remittances in March,” said the CBK.
Cytonn Investments attributes the increase to the increased uptake of financial products by the diaspora due to financial services firms, particularly banks, targeting the diaspora, and, new partnerships between international money remittance providers and local commercial banks making the process more convenient.
A remittance is a money sent by a person in a foreign land to his or her home country. Due to the huge sums involved, remittances are now being recognized as an important contributor to the country’s growth and development.