Financialization of Remittances in Kenya : An Idea Analysis of Financial Inclusion, Diaspora Investment and Remittance Governance

Sammanfattning

This study investigates how international remittances to Kenya are perceived and presented by official institutions, what ideas lie behind policy and strategy regarding financial inclusion and diaspora investment. The study draws on research on financial inclusion, financialization of remittances and remittance governance. With the increasing interest in remittances as a source of development funding, the importance of improving understanding of rationalities increases as well. There is a need for closer investigation of the ideas, rationalities and assumptions embedded within Kenyan remittance governance. This as previous research leaves limited insight into how Kenyan institutions themselves construct and justify processes of financialization of remittances, financial inclusion and remittance governance. An idea analysis is applied to two official Kenyan strategy documents on diaspora investment and financial inclusion. Findings show that Kenyan policy constructs remittances and diaspora investment as developmental resources whose value can be expanded through financial inclusion, formalization and market integration. Financial inclusion is framed not primarily as a social objective but as an instrument to govern financial flows. This reflects a state-led but market-oriented approach to remittance governance. The conclusion of the study is that Kenyan policy articulate remittances and diaspora investment as a political project of financialization, justified through national development, inclusion, trust and an enabling state logic.