Most of the funds sent home by Kenyans living and working abroad are used to fund immediate household needs such as food, medical expenses and school fees, with little saving for investment, a new survey shows.

According to the survey; A Diaspora Remittance Mapping in Kenya conducted by Pangea between April and June and released yesterday shows food, medical expenses and school fees took up to 50 percent of $3 billion (Sh300 billion) sent to the country last year.

The survey sampled 157 respondents from 27 countries where Kenyan citizens work.

The study shows 14 percent of adult Kenyans regularly receive on average Sh58,800 ($735) in remittances from abroad annually.

Kenyans in the Diaspora Set Monthly Record of Sh36.8 Billion Remittances

According to the Central Bank of Kenya, Kenyans in the diaspora sent home $336.7 million (Sh36.8 billion) in July 2021, up from the $315.8 million (Sh34.5 billion) that was recorded in June, setting a new monthly record.

Diaspora Investments in Kenya on the Rise

The survey on Diaspora Remittance in Kenya also shows that Kenyans in Diaspora are investing home.

“Real estate accounts for the largest percentage of investments(29 percent) with agriculture (12 percent), education (nine percent) and finance sector (eight percent),” the survey shows.

Diaspora remittances is currently Kenya’s highest forex earner after edging out tea in 2018. According to CBK, the United States continues to be the largest source of remittances into Kenya, accounting for 58.3 percent of remittances in July 2021.