Kenya celebrates International Day of Family Remittances: A spotlight on collaboration and digital transformation

The event, held at the Radisson Blu Arboretum in Nairobi, brought together government officials, representatives from the International Fund for Agricultural Development (IFAD), the private sector, and members of the vibrant Kenyan diaspora community.

The focus being recognising the immense contributions of migrant workers and exploring ways to further leverage remittances for sustainable development.

Mariatu Kamara, the Country Director of IFAD, set the tone for the day by emphasizing the critical role remittances play in achieving the Sustainable Development Goals (SDGs).

"Remittances are not just financial transactions," Kamara stated. "They are a lifeline to the developing world, used to pay for basic household needs, education, healthcare, and even entrepreneurship. They are crucial for achieving the SDGs, promoting sustainable development and 

The Ministry of Foreign and Diaspora Affairs, represented by Principal Secretary Roseline K. Njogu, acknowledged the challenges faced by the Kenyan diaspora community.

"They strive to adapt to new environments, climate, food, and cultures, often away from their default support system – their families," Njogu pointed out.

"Despite these obstacles, the diaspora are driven by the desire to succeed and make a positive impact in their lives, those of their loved ones, and their community back home. Their remittances continue to directly impact education, healthcare, small business development, gender equality, rural economic growth, and poverty alleviation."

Roseline Njogu also commended the theme of the 2023-2024 family remittances campaign, "Digital remittances towards financial inclusion and cost reduction."

"This theme highlights the positive impact of digitization," she noted. "By making remittances cheaper, faster, and more accessible, we can ensure everyone benefits from this vital financial flow. This aligns perfectly with the UN's global call to 'leave no one behind.'"

Dr. Susan Koech, Deputy Governor of the Central Bank of Kenya (CBK), offered valuable insights on emerging trends in the remittance landscape.

"Climate-change related calamities are becoming a major source of pressure for migration and displacement," Dr. Koech warned. This phenomenon is likely to have a significant impact on remittance flows in the coming years.

Dr. Koech also highlighted the growing importance of remittances sent by low-skilled diaspora members.

"Central Bank data shows that remittance source markets are shifting, revealing emerging markets like the Gulf Cooperation Countries," Dr. Koech explained.

"While high-skilled migrants make significant contributions, those with lower skill sets are also sending vital funds back home, supporting families and contributing to local economies."

Reducing remittance transfer costs remains a major concern for the CBK. "The Kenya-Tanzania and Kenya-Rwanda corridors remain costly, particularly through the bank channel," Dr. Koech stated.

"These costs can significantly impact the actual amount received by families, hindering their ability to invest in essential needs and opportunities for growth."

However, Dr. Koech offered a note of optimism. "I'm pleased to see the IDFR campaign focusing on digitalization to reduce costs and improve access. Digital solutions have the potential to revolutionize the remittance landscape, making it faster, cheaper, and more secure for everyone."

Throughout the event, a common theme emerged: collaboration is key to unlocking the full potential of remittances for sustainable development.

"We must work together as partners," Roseline Njogu emphasized, "to ensure that the benefits of these advancements reach everyone, especially those in marginalized communities and rural areas."

This sentiment was echoed by other speakers. Partnerships between governments, the private sector, financial institutions, and international organizations are crucial for addressing challenges such as digital literacy and internet access in remote areas.

These partnerships can also play a vital role in promoting financial literacy among the diaspora community, empowering them to make informed financial decisions that maximize the impact of their hard-earned money on their families and the broader Kenyan economy.

Kenya's celebration of the International Day of Family Remittances served as more than just a policy discussion. It was a powerful testament to the sacrifice and resilience of Kenyan migrants around the world.

Their unwavering commitment to supporting their families back home fosters hope and ignites a spirit of collaboration.

By focusing on digital transformation, financial inclusion, and fostering partnerships, stakeholders in Kenya are paving the way for a future where remittances can have an even greater impact on families, communities, and the nation's overall development.