Abstract:
In the recent past, diaspora remittance has been a main and regular source of foreign
currency in Kenya. Over the past decade, diaspora remittance has grown from 576
Million Dollars in 2010 to 2.218 Billion Dollars in 2020 representing an increase of
approximately 384 per cent. This leads to a developing interest on the impact that
diaspora remittance has on economic growth considering the recent data. This study
aimed to establish the effect of diaspora remittance on economic growth and
development in Kenya and utilized quarterly data that was extracted from Statistical
Abstracts and Economic Surveys for the period 2000-2020. The study used ordinary
least squares estimation to established the effect of diaspora remittance on economic
growth and development in Kenya. The outcome of the study revealed that diaspora
remittance had a positive and significant impact on economic growth and development
in Kenya. This study therefore recommends that the government should put policies
that encourage diaspora remittance which will consequently contribute to economic
growth
