( fdi ), official development assistance ( oda ), and portfolio investment flows. closer home, kenya is the third largest recipient of remittances in sub - saharan africa, and it received us $ 4. 0 billion in 2022, an increase of 8. 3 percent compared to 2021, which represents over 3 percent of kenya's gdp. remittances have had massive impact on the lives and livelihoods of the recipients. take for example, esther from kenya, who worked in saudi arabia as a housekeeper for 7 years from 2012 to 2019. she was able to achieve 70 percent of her financial goals while in saudi arabia and at the same time managed to build a 2 - bedroom stone house in kabete, kenya, educate her 3 children and take care of her mother's as well 1 / 3 bis - central bankers'speeches as other relative's needs. kenya's digital landscape enabled her to achieve this by providing a platform for transactions ( m - pesa ) and for savings ( m - shwari ). esther is a return migrant and believes that she would have achieved 100 percent of her financial goals had she stayed longer. however, the cost of sending remittances remains high especially in certain corridors. according to the world bank's data, the cost of sending us $ 200 averaged between 5 percent and 10 percent worldwide, far exceeding the sustainable development goal ( sdg ) target of 3 percent. as a result of the high costs, remittance tickets remain sizeable. in the case of kenya, the adoption of technology and innovation has reduced costs allowing for smaller bite - sized remittance tickets. kenya's 2021 diaspora remittance survey revealed that 32 percent of remittances are through mobile money operators, due to the convenience, speed, and lower cost. still, a lot needs to be done to reduce costs towards the sdg target. remittances are used by recipients largely for daily expenditures, and not for investment and growth. the 2021 diaspora remittance survey revealed that the purchase of food and household goods, medical and education expenses, rent, and household utilities constituted 49 percent of remittances. this indicates that the huge reservoir of human and financial capital that represents the diaspora remains largely untapped. the diaspora should be an important bridge between the host and the home countries. for instance, india success story in the information technology ( it ) industry is anchored on the diaspora. india

njuguna ndung ’ u : developments in kenya ’ s insurance industry sector remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the launch of continental reinsurance brand and products, nairobi office, nairobi, 5 july 2012. * * * the chairman, continental re, nigeria distinguished guests, ladies and gentlemen. many thanks indeed to continental reinsurance for having invited me here today at this auspicious occasion where continental re is launching its brand in kenya. it is extremely heartening to see such a strong attendance for this breakfast meeting. firstly, allow me to spend a few moments to reflect upon the future of the kenyan insurance industry based on my experience, and to provide some thoughts and advice on where reinsurers such as continental reinsurance can contribute additional value in the sector. the kenyan insurance market wrote kshs. 100 billion of gross direct premiums in the year 2011. it has grown at an average rate of 16 % p. a. over the last 5 years. the market comprises of 45 insurance companies, transacting long - term and short - term insurance business. in addition, there are over 140 insurance brokers operating in the kenyan insurance market. competition is strong and therefore clear market positioning is essential. i am standing here today wearing two hats : one, as regulator of the banking sector and secondly, as a board member of the ira. i have seen that there is a strong requirement for products that are driven by a real need from customers – products that appeal to a specific demand. i am happy to note therefore that the industry is addressing the matter of innovation and are designing new products particularly targeting the lower market. this is the way in which the insurance industry will be able to enhance the level of financial inclusion among the population. by way of example, let us look at the agricultural sector – which, comprises a vital 80 % of our economy with a 26 % contribution to gdp. insurance and reinsurance should play a bigger role in the development of the agricultural sector in kenya. i am sure that, weather - index micro insurance schemes are making a measurable impact where payouts enable farmers to recover from what would otherwise be financial disaster. for instance in august last year, 3, 380 farmers received compensation for the loss of their crops, totalling approximately kshs. 150 million. the transfer of weather risk away from these farmers to the international insurance markets strengthens the resilience of farmers and agricultural businesses to