Migrant Workers Defy Increased Costs In Remittances Growth

By Kepha Muiruri

Migrant workers have defied the global rise in the cost of living to sustain the volumes of diaspora remittances.

This is according to a new survey by leading global payments company World Remit which surveyed diasporas in the US, UK and Australia earlier this month.

Findings from the survey show migrants have applied various interventions to cut their spending habits with a view to sustaining remittances.

The cuts include spending on food, limiting social gatherings and opting for public transport in place of driving.

“Migrants’ resilience and commitment to their loved ones back home, has proven to be vital, especially in a period where household expenses are increasing around the world. This proves, that even in times of financial instability, many migrants are making conscious adjustments to their daily lives to maintain the regular flow of remittances to families and loved ones back home,” noted Jorge Godinez, WorldRemit Head of the Americas.

The rising cost of living has been a double-edged sword affecting both the senders and recipients of the diaspora remittances.

During the opening half of 2022, diaspora remittances into Kenya have continued to grow unabated despite documented global shocks which include fears of a recession in developed economies.

Data from the Central Bank of Kenya (CBK) puts diaspora remittance flows at Ksh.242 billion ($2.045 billion) in six months to June compared to Ksh.207 billion ($1.75 billion) over a similar period in 2021.

This represents a 16.9 per cent growth in the inflows year over year.

The strengthened inflows continue to support the country’s current account and the stability of the exchange rate.

The North American continent continues to be Kenya’s source of diaspora dollars.