WorldRemit, a cross-border digital payments firm led by London-based Somali businessman Ismail Ahmed, has stated that it expects the reopening of schools to boost diaspora remittances to Kenya, owing to an increase in funding support sent by Kenyans living abroad to their families back home.
In a recent survey conducted by the Ahmed-led firm, education and health continued to be the most popular reasons for Kenyans living abroad to send money home, with the United States serving as the primary market source.
The recent rush to pay school fees is expected to increase inflows this week, with a monthly forecast of more than Ksh40 billion ($338.4 million).
The recent statement by the leading cross-border digital payments firm follows a slowdown in May, when inflows fell by about 4.4 percent, as inflation took a toll on households in various economies, with Kenya recording the highest in two years, at 7.9 percent.
“Before the March rebound, remittances were down five percent in February compared with January. As schools re-open, we foresee more inflows as family and friends in the diaspora continue to support those back at home,” WorldRemit’s management stated.
According to the global firm, digitization remains a key driver for the growth of remittance services, with significant developments recorded since the outbreak of the pandemic.
“Digital services are proving to be less expensive, more secure, and more convenient for both senders and receivers,” the company stated. It added that “innovation and customer service continue to be a major differentiator for service providers.”
WorldRemit, which Ahmed, Richard Igoe, and Catherine Wines co-founded in 2010, has grown from a small firm that facilitates payments into a cross-border digital payments service that provides international money transfer and remittance services globally.
As technological innovation and adoption have pushed the acceptance of cross-border transfers and payments, the cross-border digital payments firm’s international client base has grown to more than 5.7 million.
