Writes Leo Odera Omolo.
KENYA received the highest Diaspora remittances from its citizens living an working in the abroad.
This has put Nairobi on the lead of other regional states in eastern Africa, according to the World Bank report just released.
The report shows that last year alone, Kenya received a total of Kshs 208 billion {USD 2.5 billion} from the Diaspora. up from Kshs 149.8 billion {USD 1.8 billion} in 2010,representing a 39 per cent rise.
Statistics from the Central Bank of Kenya {CBK} show in February, Kenya received a record Kshs 8.7 billion {USD 103.97 million}, the highest the country for the country in a single month.
In an interview with Nairobi based DAILY NATION at the release of the February figure, a top official of the CBK attributed the harp rise in remittances during the month to increased use of formal channels and a reduction in costs.
The paper quoted Charles Koori, the director of research at the CBK as saying hat the country could have received more through informal channels.
The World Bank report recommends an improvement on data on remittances, both at the national and the bilateral levels, which it says will enhance monitoring of progress in reducing remittance costs.
Close behind Kenya is Uganda, which received USD 937 million last year, up from USD 915 million in 2010.
Tanzania had the least remittances of all the five EAC countries, maintaining an annul total of USD 25 million for each of the past two years.
Report says, apart from Tanzania and Burundi that maintained their remittance inflows, as recorded in 2010, all the other EAC member states recorded increased foreign remittances mirroring the trend in most developing nations, so the World Bank report indicates.
“For the first time since the global financial crisis, remittance flows to all six developing regions rose in 2011.
“Following this rebound the growth of remittance to developing countries is expected to continue at a rate of 7.8 per cent annually to reach USD 441 billion by the year 2014,” reads a statement fro the World Bank.
Last year, remittance to developing countries totaled USD 372 billion representing a 12.1 per cent rise from remittances received in 2010. It is estimates last December; the bank had projected remittances to developing countries for 20911 to total USD 351 billion.
The increase in remittances has been attributed to reduction in the average remittance costs from about 8.8 per cent of the amount being remitted in 2008 to an average of 7.5 per cent during the third quarter of 2011.
Ends