“Leave No One Behind in Accessing Digital Remittances and Financial Inclusion”

On the occasion of the International Day of Family Remittances, the Kenya United Nations Network on Migration (UNNM) calls stakeholders in Kenya to prioritize access to digital remittances and financial inclusion for migrants and their families in line with the commitments in the National Implementation Plan for the Global Compact for Safe, Orderly and Regular Migration (GCM).

Migrants’ remittances support families and local communities in countries of origin, reducing poverty and fuelling development, enhancing access to education and healthcare, improving food security, economic growth, gender equality and climate resilience. Remittances are crucial for financing climate adaptation and serve as an essential coping mechanism during disasters.

Kenya is the third largest remittance recipient in sub-Saharan Africa and the fifth largest in Africa overall. In 2023, remittances sent by Kenyans living abroad reached a record Ksh 671 billion ($4.19 billion). Data from the Central Bank of Kenya shows that diaspora remittances in the 12 months to December 2023 increased by 4 percent from the recorded in 2022. In the first four months of 2024, Kenyan migrants sent home a total of $1.6 billion, marking a 20 percent increase over the same period in 2023.

By fostering further digital and financial inclusion state and non-state actors can empower low-income households to build financial resilience, enabling their active participation in achieving the Sustainable Development Goals (SDGs), in alignment with the transformative promise of the 2030 Agenda to leave no one behind.  In this regard, the Central Bank of Kenya's role is commendable. Over the past 18 months, it has licensed six new remittance operators, bringing the total to 24.

Similarly, the State Department for Diaspora Affairs (SDDA) under the Ministry of Foreign & Diaspora Affairs plays a significant role. Its new mandate includes explicit support for remittances and diaspora investments in Kenya, demonstrating the government’s commitment to the welfare of migrants and their families.

Migrants and their families are benefiting from enhanced access to digital financial services, which offer reduced costs and an improved customer experience.  Yet despite progress, the average cost of sending remittances ($200) in Kenya is 9.15% (Q4 2023), which is far from the SDG target 10.C of 3% remittance cost. This rate is also higher than the global average (6.39%) and the average in sub-Saharan Africa (7.90%).

Kenya is recognized as a global leader in financial inclusion, with over 84% of the adult population having access to formal financial services since the mobile money revolution in 2007. However, while financial inclusion in Kenya is at an all-time high, financial health has declined sharply between 2016 and 2021. There is room to leverage remittances and adjacent financial products (savings, credit, insurance, etc.), especially in rural areas for vulnerable groups.

When managed well, remittances can significantly support our collective development agenda and boost climate action. To ensure that no-one is left behind, the Network urges all parties, to move swiftly to take the final steps to promote digital and financial inclusion in line with the GCM.  The Network stands ready to support Kenya in implementing the GCM Plan to enhance the financial and social inclusion and integration of migrants.

On this day, the Kenya UNNM recognizes the contributions that migrants make to their families, friends, communities, and to Kenya through the money they send home, helping families achieve their own SDGs.

Statement by:

Stephen Jackson, UN Resident Coordinator in Kenya and chair of the Kenya UN Network on Migration

Sharon Dimanche, IOM Kenya Chief of Mission and coordinator of the Kenya UN Network on Migration

Editors notes

About International Day of Family Remittances

The International Day of Family Remittances (IDFR), established by the United Nations General Assembly, annually recognizes the positive economic impact of remittances on households, communities and countries, acknowledging the sacrifices and generosity of hundreds of millions of migrants who regularly send them to their families back home.

The 2023-2024 campaign theme, "Digital remittances towards financial inclusion and cost reduction," underscores the positive impact of digitalization of remittances in lowering costs, enhancing access, and advancing financial inclusion. This starts from recognizing the central role of migrants and their families and extends to the collaborative efforts of financial service providers, governments, and regulators in facilitating these flows.

About the Kenya UN Network on Migration