Remmitances and Poverty in Kenya

10 Pages Posted: 10 Sep 2010

See all articles by Joy M. Kiiru

Joy M. Kiiru

University of Nairobi - Department of Economics

Date Written: September 2, 2010

Abstract

Domestic and international migration has become a strategy for individuals and families in developing countries to cope with poverty and economic crisis. Migrants attempt not only to improve their own livelihoods but also they send a considerable share of their earnings to their families in the region of origin. The main objective of this paper was to measure the impact of remittances on poverty. The other objective was to measure the determinants of remittances. The Kenya Integrated Household Budget Survey data (2005/06) were used for analysis.

Econometric models were employed to analyze the data. The results show that remittances have had positive impacts on household consumption. Remittances have also been used to deal with household economic shocks. In particular rural households mentioned price related shocks that affect agricultural production as being significant and that remittances have been used to cushion the impacts from these shocks. Also, the study shows that social networks are very significant determinants of remittances and therefore welfare. Policy should therefore aim at strengthening social networks as a source of social capital. This will help form resilient communities in the face of economic challenges. Other policy implications relate to social protection and the need for deliberate social protection policy that will enable households to deal with economic shocks.

Keywords: Remittances, Poverty, Social Protection Policy

Suggested Citation

Kiiru, Joy M., Remmitances and Poverty in Kenya (September 2, 2010). OIDA International Journal of Sustainable Development, Vol. 1, No. 8, pp. 33-41, 2010, Available at SSRN: https://ssrn.com/abstract=1674549

Joy M. Kiiru (Contact Author)

University of Nairobi - Department of Economics ( email )

Nairobi
Kenya

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