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

The new record of remittances from Kenyans in the Diaspora is a 21.6 percent increase compared to the $277 million (Sh30.3 billion) recorded in July 2020.

The cumulative inflows in the 12 months to July 2021 totaled $3.4 billion (Sh376.5 billion) compared to $2.9 billion (Sh317.2 billion) in the same period in 2020, a 20.3 percent increase.

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.

In the African source markets for remittance inflows into Kenya, Tanzania, Uganda, and South Africa took the lead.

Other significant source markets include the UK, Germany, and Canada. Gulf states such as Saudi Arabia, United Arab Emirates, Qatar, and Bahrain.

A remittance is money sent by a person in a foreign land to his or her home country. Due to the huge sums involved, remittances are now being recognised as an important contributor to the country’s growth and development.

Education, healthcare, and household needs are the main uses of remittances in Kenya.

CBK attributes the increase in diaspora remittances, in the wake of the global COVI-19 Pandemic, to financial innovations that have opened up more convenient channels, such as using mobile phones for transactions.

“The rapid acceleration of digitalization has been the ‘silver lining narrative’ of the pandemic. Remittances have been one of the key beneficiaries of digital transformation as members of the diaspora sent funds to their loved ones back home to help them ride out the ravages of the pandemic,” said Patrick Njoroge, Governor of Central Bank of Kenya.