Impact of COVID-19 on the On-going Refugees Economic Inclusion in Kenya: Difference-in-Differences Analysis

International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue III, March 2022 | ISSN 2454–6186

Impact of COVID-19 on the On-going Refugees Economic Inclusion in Kenya: Difference-in-Differences Analysis

Serge B. Hounton¹, Dulo Nyaoro^2
1Master of Arts Student in Forced Migration Moi University, Kenya
²Peace Institute Coordinator Moi University, Kenya

Abstract: This paper examines how the COVID-19 pandemic has affected the refugee’s livelihood and the on-going economic inclusion in Kenya. We analyse the impact of the pandemic on various refugee settlements such as, Kalobeyei Settlement, and urban areas in the host country compared to the formal camps (Kakuma and Dadaab), Kenya. By doing so, we use the Difference-in-Differences evaluation analysis to access the impact of the pandemic on the refugee’s livelihood (refugees’ income) and the economic inclusion (relief services). We use data collected by the United Nations High Commissioner for Refugees (UNHCR) from May to July 2020 in Kenya to empirically analyse the effect of COVID-19 on the refugees. Our findings show that the refugees in the Kalobeyei settlement and urban areas livelihoods have been negatively and significantly affected than the refugees in the formal camps, Kakuma and Dadaab. Moreover, our analysis reveals that the pandemic has increased the aid dependency of Kalobeyei and urban refugees in Kenya. That means the COVID-19 has negatively impacted on-going refugees’ economic inclusion in Kenya.

Keywords: COVID-19, Economic Inclusion, Refugee’s livelihoods, Refugee Settlements, Difference-in-Differences

I. INTRODUCTION

1.1. Background

The global pandemic of COVID-19 has adversely affected most people around the world. However, for refugees in developing countries it has been double tragedy because of their vulnerable situation. As of 31st December 2020, Kenya hosts more than 504,854 registered Refugees and Asylum-Seekers which makes it the third largest refugees hosting country in Africa (UNHCR, 2020b). These refugees are mainly hosted in designated camps or in urban areas in Kenya. These are Dadaab camp in the North East which hosts about 44 percent of the refugees, the Kakuma camp in the North West which hosts about 40 percent and the rest (16 percent) which is hosted in the urban area of Nairobi.

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