In a commentary on the Central Bank of Kenya’s website, Mr. Charles Koori, the Director of the CBK’s Research Department says:

In February 2012, remittances to Kenya amounted to US$ 104 million (about 8.6 billion), which was 71.12 percent higher than the level in February 2011 and 15.84 percent higher than what was recorded in January 2012. The increased remittances are attributed to among others:

• Improvement in data collection techniques and proper classification of remittances by some commercial banks.
• Aggressive outreach to the Diaspora to invest in Government's Savings Development and Infrastructure bonds through these formal channels.
• Increased competition among money transfer service providers that reduced transaction charges.

Remittances have increased consistently over the last six years with an average increase in annual remittances of  12.60% over the last 5 years to 2011.

Below is an infographic showing how remittances have been flowing into the country in the recent past:

[caption id="attachment_5515" align="alignleft" width="781" caption="Source: FILE"][/caption]

The question is, where is all this money coming from? Yes, the Kenyan financial system has become more open and robust. The economy of South Sudan has opened up thanks to their successful transition into a republic and many Kenyans have gone into South Sudan and other countries seeking better opportunities. Is it that Kenyans abroad are getting serious pay hikes? What do you think?