Kenyans abroad sent home a record Kshs. 28.4 billion ($263.1 million) in October this year, a 17.3% increase compared to the same period last year when inflows for the month stood at Kshs. 22.4 billion ($224.3 million)
Data from the Central Bank of Kenya further indicate that cumulative inflows in 12 months ending October 2020 totaled Kshs 324.6 billion outpacing last year’s performance when remittances amounted to Kshs. 292.7 billion.
Remittance inflows have continued to withstand the effects of coronavirus to record increased month-on-month growth.
However in April this year, a month after the coronavirus outbreak was announced in Kenya, inflows dropped sharply to Kshs. 22.5 billion compared to Kshs. 26.5 billion registered during the same period last year.
The World Bank warned last month that low and middle-income economies are likely to face a rise in poverty on account of reduced inflows which are expected to plunge 14% by 2021.
“Remittance flows to low and middle-income countries (LMICs) are projected to fall by 7 percent, to $508 billion in 2020, followed by a further decline of 7.5 percent, to $470 billion in 2021,” the World Bank warned.
The bank attributed the remittances decline to weak economic growth in countries hosting migrants as well as rising unemployment.