NAIROBI, Jan. 20 (Xinhua) -- Mobile money has overtaken banks and cash transfer firms in sending remittances to Kenya, the Central Bank of Kenya (CBK) said in a survey released on Thursday.

The apex bank in the Kenya Diaspora Remittances Survey said that convenience, favorable transaction charges, exchange rates, security and safety are among reasons that make mobile money attractive to citizens abroad.

"Mobile money is the most preferred service, followed by banks and money transfer firms like WorldRemit, Wave, Sendwave, and Western Union," said the bank.

The CBK said the remittances are sent to meet the basic needs of nuclear family members every month, including purchasing food and household goods, to offset medical expenses, education expenses, for payment of rent and household utilities, farming needs and investment in real estate.

On average, CBK established that the cost of sending funds was 4 to 6 percent of the amount sent, with the cost of remitting being higher for Europe-Kenya and Asia-Kenya remittance corridors, averaging 6 percent of the value of cash sent.

The survey found that remittances remained resilient during the COVID-19 pandemic period, with most of the respondents providing annual support averaging 453,613 shillings (about 4,000 U.S. dollars) in 2020 compared to 6,000 dollars in 2019.

Remittance inflows to Kenya have increased tenfold in the last 15 years reaching an all-time record of 3.72 billion dollars in 2021, according to CBK.

Kenya's 2021 mobile money use is set to hit a record high after east African nation citizens moved 5.1 billion dollars on phone between January and November.

The survey was conducted from March to May 2021, aimed at collecting valuable information on remittance inflows to Kenya, with the objective of boosting the role of remittances in supporting the economy and livelihoods. And it targeted Kenyans living abroad who had sent remittances in 2019. Enditem.

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