A report by the Kenya National Bureau of Statistics (KNBS) has urged Savings and Credit Cooperative Societies (SACCOs) to develop simple, reliable, and affordable investment products that can attract and channel remittances into productive investments.
The report, titled 2025 Remittances Household Report, also urged financial institutions and county governments to develop simple, reliable and affordable investment products, including low-cost housing loans, school-fee savings plans, micro-insurance, pay-as-you-go green technologies and diaspora investment funds.
“These kinds of products would help channel part of the remittances toward assets that support long-term wealth and resilience, not just short-term consumption,”
recommends the bureau in its report
The report, which was launched on Tuesday, June 16, is the first nationwide study aimed at providing a comprehensive assessment of household remittance flows in Kenya. The survey was undertaken by the bureau in partnership with the Central Bank of Kenya (CBK) and Financial Sector Deepening Kenya (FSD Kenya).
“Remittances primarily consist of personal transfers, covering current transfers in cash and/or in kind made by resident households to non-resident households. These transfers are made without anything in return (involving no quid pro quo), are not linked to the sender’s source of income, and are not conditional on the specific use of the funds,” explains the report.
The survey was designed to determine the scale of remittance flows into and out of Kenya, including both cash and in-kind transfers.
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It also aimed to capture informal remittances that are not recorded under the International Transactions Reporting System (ITRS), thereby providing a more complete picture of financial flows that are often missed by formal tracking systems.
In addition, the study sought to analyse remittances by geographical origin and destination, highlighting where funds come from and where they are sent. It also examined the channels used for transferring remittances, along with the costs associated with each method.
The survey further assessed how households use remittances, offering insights into their contribution to livelihoods, consumption, and broader economic activity.
Ultimately, it aimed to develop policy recommendations to improve the remittance ecosystem, particularly in terms of efficiency, access, and regulatory frameworks.
By Frank Mugwe
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