Remittance inflows from Kenyans living and working abroad surged to $355.6 million (Sh54.2 billion) in October 2023, an increase of Sh2.3 billion from the previous month, according to data from the Central Bank of Kenya (CBK).
The remittance inflows in October were 6.9 per cent higher than the $332.6 million (Sh50.8 billion) recorded in October 2022. The cumulative inflows for the 12 months to October 2023 reached $4,165 million (Sh634.9 billion), a 4.2 per cent increase from the same period in 2022.
“The cumulative inflows for the 12 months to October 2023 hit $4,165 million (Sh634.9 billion) compared to $3,996 million (Sh609.1 billion) in the same period in 2022, an increase of 4.2 per cent,” CBK says in its weekly bulletin.
The US remains the largest source of remittances to Kenya, accounting for 54 per cent of the total inflows in October 2023.
|Year||Month||North America||Europe||Rest of World||Total Remittances (USD ‘000)|
Remittances are the main source of foreign exchange earnings for Kenya, surpassing the revenues from tea, coffee, and tourism.
To receive remittances, people in Kenya use formal channels such as commercial banks and other authorized international remittance service providers.
The Central Bank of Kenya (CBK) conducts a monthly survey on remittance inflows through these formal channels. The survey collects data on the amount, source, and purpose of the remittances.
The CBK publishes the survey results on its website and uses them to monitor the trends and impact of remittances on the Kenyan economy.
According to Western Union’s inaugural Global Money Transfer Index, Kenya has one of the highest financial inclusion rates in Africa, driven by the adoption of mobile money.
“It’s therefore unsurprising that a large majority of consumers are keen for even more innovation from money transfer brands to further evolve the services they use and make the process more convenient, reliable, and valuable.”
“More than nine in 10 (92%) receivers would like to collect funds in currencies other than Shilling, while 90% of them, along with 86% of senders, are eager for providers to integrate transfer services within a single mobile app.”