Diaspora Remittances to Drop by 20 Percent, World Bank Says
Money sent home by Kenyans in the diaspora is expected to drop considerably in 2020 due to the global outbreak of Covid-19.
The World Bank projects a global decline in remittances by about 20 percent citing the economic crisis caused by the pandemic, which continues to wreak havoc across the world.
This would be the biggest fall in recent history largely due to a decline in the wages and employment of migrant workers, who are more vulnerable to loss of employment during an economic crisis.
“Remittances to low and middle-income countries (LMICs) are projected to fall by 19.7 percent to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households,” says World Bank in a report.
Remittances from the diaspora have remained Kenya’s leading source of foreign exchange since 2015, ahead of earnings from tourism, tea, coffee and horticulture exports.
In Africa, Kenya is the fourth-largest recipient of diaspora remittances behind Egypt, Nigeria, and Ghana.
Last year, Kenyans abroad sent home $2.7 billion (Sh280 billion)—a new annual record—according to the Central Bank of Kenya (CBK).
This represented a 3.7 percent growth from the previous year when diaspora remittances stood at $2.6 billion (Sh272.3 billion).
The US and Europe, where the largest share of Kenya’s diaspora remittances come from, have been hit hard by the Covid-19 pandemic. The US has the highest number of Covid-19 infections and fatalities in the world with over 962,000 cases and 54,300 deaths as of Sunday, April 26th.
North America accounts for about 47 percent of total Kenya diaspora inflows, followed by Europe (24 percent) and the rest of the world (29 percent).
Comments (2)
All the members of the diaspora should stop sending money to Kenya until the thieving banks offer better exchange rates.
Some banks are taking over shs 10.00 per every dollar sent, that is the banks are giving shs 94/5 per every dollar when the exchange rate is shs 107/8 per every dollar! What kind of crap is this people???? The diaspora have the money power to demand better exchange rates.
I understand the banks have to make some profits but at the same time, we demand better rates enforced by a standing government regulations.
We cannot allow banks to be the digital thieves while folks in the diaspora are working hard day and night to make something for themselves, and out the kindness of the heart, sending money to families back home!
Wow, my father is not called “James Mwangi” of Equita fengi so I can feed him first with huge commissions even before I feed those who deserve the money most!! What a shame digital thieves!!
Even Uhuru has something to say about the diaspora contributions but he cannot protect those who contribute? Do something Uhuru!!! Jameni!! Hii ukora, ni Mbaya sana!
I fully support your suggestions to strike on sending the money to Kenya by those in the diaspora! At times you have to force change to take place by holding back on money remitted!
Kenya Banks are outrightly stealing from the diaspora! This situation must be rectified or we completely stop sending money to Kenya. We have the power to force the government to come up with better regulations!