Money Markets
Transfer charges erode value of remittance cash
Ifad found out that only two companies control 65 per cent of the remittances. Photo/FILE
Posted Friday, October 23 2009 at 00:00
In most African countries including Kenya, the World Bank says the bulk of remittances are in consumer goods, leaving less for savings.
Kenya receives an average of Sh3.7 billion each month through the formal channels such as commercial banks and authorised international money transfer avenues, said Njuguna Ndung’u, the governor of the Central Bank of Kenya.
Trust fund
The study by IFAD, was released on Thursday in Tunisia, a day before the African Development Bank and the France government establishes a trust fund on remittances from migrants.
The institution will help migrants to understand how to send money home, support for regulatory reforms for these transfers, the development of financial products, and the development of investment environment at home.
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