| dc.description.abstract | The aim of this study was to establish whether remittances of Kenyan Diaspora based in the USA,
were reducing despite the global financial crisis (2007 - 2009). The period of 2007 to 2009 were
chosen because they indicate the critical levels of the financial crunch of the USA financial system.
The study investigated the global financial crisis in order to establish whether it was the major
factor affecting the remittances or whether there were other factors or policies affecting
remittances of USA based Kenyan Diaspora. The study was conducted using qualitative and
quantitative methods and data was analysed to draw out conclusions. Further, data was obtained
from a selected group of Kenyan Diaspora based in USA. The remitters were vital in the study as
they were the main participants sending money to Kenya. In addition, data was obtained through
questionnaires from an employee of Central Bank of Kenya.
Other than drawing out key factors that affect the levels of remittances, the primary data showed
how the recipients' countries were harnessing these remittances and if Kenya is utilizing its
remittances effectively in its development. Secondary data obtained from various institutions.
Through document analysis successful plans of developed and developing countries were analysed
further to understand how remittances for development programs are been utilized. The
documents were further used to assess if the financial crunch has affected the levels of remittances,
and what has Kenya done so far to better use and account the remittances.
Finally, the results from this study show that the relationship between the financial crunch and
low remittances are evident. According to the data from CBK, remittances tend to be 'pro-cyclical'
relative to Kenya's economic cycles. The relationship between migration and remits is persistent
over time as most of the remittances were sent according to the data by those who have been in the
USA for more than six years. The remittances are sent by cumulated flows of migrants over the
years and not only by the new migrants of the last year or two. Therefore, it is safe to say, if new
migration stops over a period of a decade or so, remittances may stop ... growing. But, so long as the
migration flows continue so will the remittances in an upward trend even if it was in a reduced
amount. It is also clear that despite the financial crunch the migrants will continue to send
remittances. | en |
