Boon or bane?

Studies repeatedly show that migrants and refugees can bring big economic gains with them if allowed to work and generate wealth. The Kakuma refugee camp in Kenya provides a good case in point. A World Bank study from 2016 that found that the gross regional product of Kenya’s whole Turkana region increased by 3.4% as a result of the refugee presence.

“Refugee presence also led to increased consumption, self-reported incomes, and asset ownership of the host Turkana population,” said Melissa Fleming of UNHCR.

A newer (2018) study by the International Finance Corporation (IFC) and UNHCR assessed the camp as a marketplace for private sector investment. The study found an economy in the camp and neighbouring town worth about $56m; a vibrant informal private sector with more than 2,000 shops run by refugees and local Kenyans; and that nearly seven out of 10 residents own a mobile phone, making it a very viable market for mobile banking.