This archive report was first published on 21 August 2019.
On August 21, 2019, Equity Bank announced a significant surge in diaspora remittances, reaching Kshs66.6 billion in the first half of the year, a 28% increase from Kshs52.2 billion.
The bank's fintech capabilities played a crucial role in this growth, with Equity Bank receiving more than 50% of all the country's diaspora remittances.
According to the bank's half-year results, the diaspora commission grew to Kshs398 million during the six-month period, up from Kshs383 million recorded during a similar period in 2018.
Equity Group Managing Director and CEO Dr. James Mwangi attributed the increase to a strategic decision to make diaspora remittances affordable.
"The volume is growing at 28% and the commission is growing at 4%. This implies that we are taking advantage of the high volume to reduce and pass the benefits to the customer and making diaspora remittance much cheaper," said Dr. Mwangi.
Notably, diaspora remittances have become a significant source of foreign exchange for Kenya, surpassing tourism, tea, coffee, and horticulture exports.
