Dollars of Love: Kenyan Diaspora Spend More on Family Support as Remittances Hit Ksh210 Billion
Kenyans living abroad have been increasing their financial support for their families back home, as indicated by data released by the Central Bank of Kenya (CBK).
The CBK’s report, covering remittances from March to May 2021, illustrates a consistent flow of money from Kenyan expatriates to their relatives, primarily used for essential household needs such as food, medicine, and education expenses.
According to CBK, these remittances are frequent, usually every month, and are primarily directed toward immediate family members, indicating a significant contribution to meeting the basic needs of recipients.
Moreover, the report highlights that most recipients of these remittances are either self-employed, unemployed or students, suggesting a notable dependency ratio among Kenyan expatriates.
These observations find resonance with Roseline Njogu, the Principal Secretary of the State Department for Diaspora Affairs, who noted in a statement that a substantial portion of remittances sent to Kenya is dedicated to supporting family members.
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Further examination of the data reveals that a considerable portion of these remittances is allocated towards real estate investment (land and buildings), mortgage payments, and purchasing essential household items.
These findings come amid a surge in diaspora remittances, with official records showing a total of Ksh210 billion being sent to Kenya by the end of the first quarter of 2024.
CBK data indicates a fluctuating pattern in remittances, with a peak of Ksh53.8 billion (USD 412.4M) in January, followed by a decrease to Ksh50.4 billion (USD 385,933M) in February, and then another peak of Ksh53.2 billion (USD 407,772M) in March.
The United States emerged as the primary source of these remittances throughout the first three months of 2024.
With the current remittance volumes, forecasts for the year-end suggest a potential increase in annual remittances, building upon the Ksh671 billion recorded in total remittances for 2023, with the United States continuing to lead in terms of volume.
Dollars of Love: Kenyan Diaspora Spend More on Family Support as Remittances Hit Ksh210 Billion