Remittances to Kenya resist COVID-19 – CAJ News Africa
of MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) – DISCOUNTS in Kenya’s diaspora defied the odds presented by the coronavirus (COVID-19).
This increase comes despite the impact of the pandemic on wages and employment around the world.
The Central Bank of Kenya (CBK) recently released data showing that remittance flows to the country increased by 10% from $ 2,796 million in 2019 to $ 3,095 million in 2020, or 3% of proceeds. gross domestic (GDP) of the country. .
This is contrary to projections made in 2020 which predicted that remittances to low- and middle-income countries were likely to decline due to the pandemic.
The increase in remittances to Kenya has been attributed to financial innovations that have opened up more convenient channels, such as the use of cell phones for transactions, which allow families to send and receive money. money easily despite the wide restriction of movements and locks.
“The rapid acceleration of digitization has been the ‘positive story’ of the pandemic,” said Patrick Njoroge, Governor of CBK.
“Remittances have been one of the main beneficiaries of the digital transformation, as members of the diaspora send funds to their loved ones to help them overcome the ravages of the pandemic,” he added.
A recent study on Kenya published by the International Fund for Agricultural Development (IFAD) highlighted innovative solutions that could improve access and use of remittances for better financial inclusion and investment opportunities .
“What the remittance market needs now are good practices and innovations that deliver digital solutions and financial services to families receiving remittances to improve their recovery and resilience,” said Pedro De Vasconcelos, director of IFAD’s Remittances Financing Mechanism.
– CAJ News