Foreign Remittance Inflows and their Impact on the Socio-Economic Development of Kericho County, Kenya

Abstract

In the majority of the developing world, foreign remittances have increasingly become a tool of socio-economic development and a key component of spurring economic growth. Foreign remittances are one of the key approaches that emigrated members of the community have been able to keep in touch with their communities and assist in the development process. Literature on foreign remittances has mainly been centered on its effect on the economy rather than on its effect on the social development of the recipient communities. This research sought to explore the implication of foreign remittances to the socio-economic development of Kericho County and the following objectives guided it; to examine the sources of foreign remittance to Kericho County, Kenya. To analyze the types of foreign remittances to Kericho County, Kenya. To assess the contribution of the foreign remittance to socio-economic development in Kericho County, Kenya. The research was anchored on altruism theory and the prospect theory, adopting a descriptive research design. The study was conducted within Kericho County. The study targeted respondents comprising members of the Kericho Diaspora Welfare Association and the County officials. The study utilized convenience random sampling. The sample size for the study was 108 respondents. The study utilized data from both primary and secondary sources. The collected quantitative data was analyzed using descriptive statistics and presented using measures of central tendency. Tables and charts were used where appropriate. The research obtained a 91% response rate. Findings showed that vast amounts of remittances, (82%) were received from individual workers’ remittances and that there is a positive causal link between foreign remittances and socio-economic development in Kericho County. The study concluded that foreign remittances are key in enhancing socio-economic development through better education opportunities, income-generating activities, and better agricultural farming practices. Recommendations were that the county government creates awareness on financial literacy to ensure that there is minimal wastage of foreign remittances received in the County and that donor agencies should expand programs backed by collective remittances and monetary remittances that can expand the socio-economic development within the County