Economic contribution of urban refugees in Nairobi City County, Kenya

Abstract

This study delves into the intricate fabric of urban refugees' existence in Nairobi, Kenya. It focuses on understanding their complex interplay of socio-economic challenges, the ramifications of prevailing policies, and their noteworthy contributions to the economic landscape. Guided by the Neoclassical Theory of Supply and Demand and the New Institutional Economics theory, the study employs a mixed-method approach to explore these multifaceted dynamics comprehensively. Nairobi, a city grappling with the convergence of diverse populations, is the backdrop for this study. Urban refugees in this context confront a web of socio-economic challenges that often intertwine and exacerbate their predicament. These challenges are manifold, including the profoundly entrenched issue of discrimination affecting 68.58% of participants. Language barriers, particularly pertinent among Congolese refugees, pose a significant hurdle for 54.87% of respondents. Meanwhile, an unsettling 53.98% reveal instances of police harassment, underscoring the vulnerability of this population. On the economic front, challenges span the spectrum from limited opportunities (78.76%) and income scarcity (63.72%) to resource constraints (38.05%). These challenges collectively impede access to meaningful employment and hamper the pursuit of sustainable livelihoods. Delving into Kenya's policy landscape exposes a nuanced regulatory framework governing urban refugees. While there is latitude for freedom of movement, the issue of work permits is a pivotal concern. Most urban refugees grapple with the absence of work permits, which hinders their ability to access formal employment channels and avenues for sustainable income generation. However, a silver lining emerges in the form of positive social cohesion. Urban refugees attest to constructive relations with the host community and government authorities, a factor conducive to fostering an environment conducive to economic activities. This social harmony not only engenders economic opportunities but also contributes to the broader narrative of social integration. To assess urban refugees' financial contributions, the study delves into their expenditure patterns and the subsequent impact on the local economy. Employing a rigorous regression analysis framework, the study discerns a robust correlation between refugee expenditure and local economic growth, signifying a 24% connection. This empirical finding effectively underscores the urban refugees' role as active economic agents, wielding power to influence economic dynamics at both local and national levels. Their consumption habits reverberate through the economic fabric, underlining their pivotal contribution to economic expansion. In conclusion, this research transcends the realm of numbers, breathing life into the experiences of urban refugees in Nairobi. This study sheds light on critical aspects of urban refugees' existence by meticulously unravelling the tapestry of socio-economic challenges, policy intricacies, and economic entanglements. As a beacon of insight, this research holds the potential to catalyse meaningful change, guiding policy-makers, international organisations, and local stakeholders toward more informed decisions. Ultimately, this study underscores the resounding potential of urban refugees as agents of economic transformation, uniting the pursuit of livelihoods with the aspiration for social cohesion and integration