According to the global lender, the increased cost took a hit on the inflows coming into the African continent as a whole compared to other developing nations
Nearly 70 per cent of surveyed Kenyan respondents cited financial and economic constraints as reasons to move abroad.
Cumulative inflows for the 12 months to May 2024 totalled $4,509 million (Sh580 billion), compared to $3,997 million (Sh514.2 billion) in a similar period in 2023, an increase of 12.8 per cent.
According to WorldRemit research, Kenya is one of the top recipients of remittances on the continent, with the primary uses being household needs, healthcare, and education.
The Loans Board noted that it will offer an 80 per cent penalty waiver for beneficiaries with accrued penalties who pay their loans in one lump sum.
The remittances are estimated to be about $1.3 billion (Sh172 billion) per year, with some 40 per cent of households in the country estimated to receive these transfers to meet their basic needs.
The State Department for Diaspora Affairs has announced plans to conduct a baseline survey, seeking a consultant to develop a framework and tactical plan for enhancing remittances.
Diaspora remittances have grown rapidly in recent years to become the country’s main source of foreign exchange, surpassing domestic exports such as tea, coffee and flowers, as well as tourism.
Kenyans abroad send more than Sh650 billion back home annually, according to estimates by World Bank's Multilateral Investment Guarantee Agency (MIGA).
This remarkable figure reflects a four per cent increase compared to the previous year.