An Exploration of Diaspora Investments in Small Businesses in Dadaab, Kenya

Executive summary

Diaspora investment plays a crucial role in the economic growth of Micro, Small, and Medium Enterprises (MSMEs), especially in the diaspora's countries of origin. They are a lifeline for underserved and high-risk refugee entrepreneurs. The interaction between the diaspora and their homeland is essential for sustained engagement and long-term planning for improved livelihoods.

The objectives of this study were to deepen the understanding of diaspora finance flow models to small businesses within Dadaab. This includes gaining insights on diaspora engagement models, establishing the market size of diaspora investments, and mapping financial service products and providers available for diaspora investments to Dadaab. The findings of this study will guide evidence-based decision making on the design and scaling of suitable models, including digital channels, to enhance self reliance and improve livelihoods.