Markets & Finance

Remittances by diaspora surge 53 per cent in three months

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In the three months to March Kenya received Sh24.8 billion from the diaspora, compared to Sh16.3 billion in the same period last year. Photo/AFP

Kenyans working abroad increased by 52.6 per cent the amount of money sent home in the first quarter attributed to improved economic growth in North America and increased use of formal money transfer services.

In the three months to March the country received Sh24.8 billion from the diaspora, compared to Sh16.3 billion in the same period last year.

The quarter on quarter growth was buoyed by a record Sh8.8 billion in the month of March, which was 48.4 per cent higher than the level recorded in March 2011 and 2.14 per cent higher than inflows recorded in February 2012.

“The increased remittances are attributed to improvement in data collection techniques aggressive outreach to the Diaspora to invest in Government’s bonds through formal channels and increased competition among money transfer service providers that reduced transaction charges,” said Charles Koori, Director Research Department in Central bank of Kenya.

Remittances from North America increased by 11 per cent to Sh4.8 billion and accounted for 54.3 per cent of total remittances up from 49 per cent in February.

Over the same time, cash inflows from Europe declined 2.8 per cent to Sh2.3 billion from Sh2.4 billion underlining the impacts of the Euro Crisis.

John Kanai, a Kenyan operating a Co-operative bank agency in the North West of America says the transaction numbers have been growing owing to increased Kenyan population, more people learning of their services, and increased income allowing for investments back home.

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