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Analysis of the Role of Remittances on Poverty Reduction in Kenya

DOI: -, PP. 16-28

Subject Areas: Corporate Governance, Development Economics

Keywords: Remittances, Poverty Reduction, Kenya

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Abstract

This paper analyses the role of remittances in poverty reduction in developing world in particular Kenya. Due to globalization there has been great movement of persons from one country to another in search of green pastures. The opening up of the economies leads to increase of immigrants who leave their home countries and stay in the host countries. Kenya has experienced large movement of its residents to developing countries to look for greener pastures. These immigrants have led to the increase of remittances to their home countries. It is on this foundation this paper sought to establish the relationship remittances and poverty reduction in developing economies in particular Kenya. In this paper data from Africa development indicators from World Bank and central bank of Kenya for a period of ten years are considered for graphical analysis to study the trend and annual pattern of behavior which supports the hypothesis of the paper that remittances growth is important in achieving the goals. It is expected that this study will benefit the government and the parties concern to ensure that the millennium goals are achieved and more so the improving of living standards of Kenyans and academicians in filling the knowledge gap and lay foundation for further research. The study provides insights into the role of diaspora remittances in poverty reduction in Kenya. It provides evidence that attracting diaspora remittances for emerging economies could as well help in mobilizing the much-needed loanable funds for private investment.

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Ombaba, K. B. M. and Wambui, M. (2016). Analysis of the Role of Remittances on Poverty Reduction in Kenya. Africa International journal of management education and Governance, e1764. doi: http://dx.doi.org/-.

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