Kenya third in Africa diaspora cash inflow – World Bank
•It attributes this to the rise in worldwide account ownership currently at 76 per cent globally and 71 per cent in developing economies.
•Diaspora cash transfers in Kenya is currently the highest source of foreign exchange elbowing out coffee and tea.
Kenya ranks among the top receivers of diaspora remittances in Africa, a key source of foreign exchange reserves.
World Bank’s latest Global Findex 2021 database report places Kenya at position three in terms of total population receiving or sending money from abroad at 53 per cent.
According to the report released on Wednesday, Ghana received the highest share at 77 percent followed by Gabon at 55 per cent.
It attributes this to the rise in worldwide account ownership currently at 76 per cent globally and 71 per cent in developing economies.
According to World Bank, account ownership around the world increased by 50 per cent in the 10 years spanning 2011 to 2021, from 51 per cent of adults to 76 per cent.
The expansion largely driven by the adoption of mobile money also saw the gender gap in account ownership across developing economies fall to six per cent from nine per cent where it hovered for many years.
Diaspora cash transfers are an important part of the economy in many places around the world and in Kenya it is currently the highest source of foreign exchange elbowing out coffee and tea.
Latest Central Bank of Kenya data shows that diaspora remittances now leads as Kenya’s top forex earner after agricultural exports and tourism revenues suffered the effects of Covid-19.
The growth in diaspora remittances marginally increased the country’s forex reserve which remained adequate at $7.953 million or 4.59 months of import cover as of July 14.
A recent survey by the bank indicates education and health remains the leading uses and purposes of sending money back home by Kenyans living abroad, with the US the main source market.