The effects of refugee influx on Kenyan Texttile industry

Abstract

This paper analysis the refugee crisis in Kenya and evaluate its economic effects on the Kenyan economy specifically on the textile industry .Lack of national laws on refugees and failure of government direct involvement in handling of refugees, result to most of the refugees finding their ways into the Kenyan urban sectors where they engage in economic activities posing unfair competition to local business fraternity and eventually crippling the textile industry .Most of these refugees are not accorded legal status and socially integrated in Kenya, while the government hold no statistics to show the number of refugees involved in business in Kenya and hence the state further losses on revenue through unrealized taxes. This research will be based on data from secondary sources by • review of research work, publications, journals, international bulletins and other material from print and related electronic media. The study will also attempt to interview experts and other specialized persons working with UNHCR here in Kenya. The paper focuses more on the Somali refugees in Eastleigh Nairobi and their profound effects on the Kenyan textile industry. Textile goods imported without taxation or duty into Somalia are easily brought to Kenya and sold at the cheapest possible prices in Eastleigh, undercutting many Kenyan competitors who do not have access to these networks. Finally, the paper identifies recommendations on policy options that the country can take in order to balance between her international duty of hosting and caring for the refugees and solving the varied economical related problems specifically on the textile industry.