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Diaspora Remittance, A Major Driver of Kenya’s 2020 Economy

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Latest data from Kenya’s Central Bank (CBK) reveals that diaspora remittances hit Sh329.41 billion ($3.094 billion) in 2020 despite the impact of the COVID-19 (coronavirus) pandemic. Although the virus crippled its foreign earnings from tourism and exports due to a global lockdown, the East African nation earned a minimum of Sh6.33 billion weekly in diaspora remittance last year.

According to a report, the country experienced a growth of 10.7 percent in diaspora remittance from the Sh285.23 billion ($2.796 billion) it made in 2019. It is also important to note that the pandemic significantly encouraged the use of financial technologies which accounted for an increase in online transfers. These smart innovations helped Kenyan’s abroad to send money home with ease.

“This remarkable growth of remittances has been supported by financial innovations that provided Kenyans in the diaspora more convenient channels for their transactions,” Patrick Njoroge, CBK’s Governor said in a statement,

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