Dadaab and Kakuma camps inject Sh1.4bn into economy yearly, says WB

Dadaab and Kakuma refugee camps inject Sh1.4 billion ($14 million) into the Kenya economy yearly according to a new World Bank Group report.

The bank attributes the economic benefits to trade and employment opportunities around camps’ ecosystem.

Businesses inside and within the camps, contractors on refugee-related supply and employment opportunities were found to be the main contributors to the Kenyan economy.

The host communities, who are mainly pastoralists, also realise an estimated Sh300 million ($3 million) in annual income from sale of livestock and milk.

The Kenyan aspect was part of a wider coverage on forced displacement and refugees in Sub-Saharan Africa.

The bank said the activities have turned the camps into economic zones that boost both local and the wider economy. For instance, Dadaab hosts hundreds of shopping centres, taxi and matatu services and lodges. Some refugees also run kiosks as well as taxis—one of the most lucrative ventures in the camp.

For instance, hiring a taxi between the several camps constituting Dadaab costs between Sh1,000 and Sh3,500. The taxis are mostly used by employees of agencies and foreigners visiting the camp.

The camps have also been a key driver of the growing heavy transport sector, employing thousands transporting relief supplies.

Upgrading of the transport, health and social services around the camps has largely happened thanks to the presence of the camps. The improved services have pulled in professionals from within and outside Kenya, a factor that has also had a multiplier effect.

According to the World Bank survey, most members of the Turkana community believe they would be far worse off without the refugees (at Kakuma camp) who are a ready market for their goods.

The two camps host 474,483 refugees from the Sudan, Somalia, Burundi, Congo and Ethiopia.

Dadaab refugee camp was opened in 1993 to host people fleeing conflict in Somalia. The refugee camp, which is the largest in the world, was intended to house about 150,000 people but this has grown to more than thrice its capacity.

Kakuma is the second largest and is overpopulated.