The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, and Kenya’s Credit Bank on Tuesday launched an affordable remittances project for rural families.
Betty Korir, chief executive officer of Credit Bank, told journalists in the Kenyan capital of Nairobi that the project will take advantage of Credit Bank’s wide network of Savings and Credit Cooperative Organizations in rural communities to make remittances more accessible at the least cost.
“The project will reduce the cost of remittances from the current 9 percent to 2 percent of the value of the money transferred to rural recipients,” Korir said.
She revealed that the project provides a uniquely tailored solution that encourages Kenyans across the world to send money home while ensuring the largest possible portion of this money gets to rural recipients by reducing the number of intermediaries involved.
David Berno, remittances and inclusive digital finance officer at IFAD’s Financing Facility for Remittances, said the project will enable the diaspora who are based in Europe to send money to their loved ones directly using digital channels in real-time.
Berno noted that the project presents a unique opportunity not only to avail remittance services to the largely underserved rural communities but also to catalyze investments in productive ventures or build-up assets. ■