Beyond the Failed State: Capital Beyond the Failed State: Capital Mobilization, Investment and Mobilization, Investment and

Entrepreneurship among Somali Entrepreneurship among Somali Refugees in Nairobi, KenyaRefugees in Nairobi, Kenya

Kenneth Omeje & Kenneth Omeje & John MwangiJohn MwangiSchool of Humanities and Social School of Humanities and Social

Sciences,Sciences,

United States International United States International UniversityUniversity

Nairobi, KenyaNairobi, Kenya

Specific Research ObjectivesSpecific Research Objectives

(1) How members of the Somali refugee (1) How members of the Somali refugee community source their business capital. community source their business capital.

(2) The history, structure and culture of the (2) The history, structure and culture of the entrepreneurship of Somali refugees in entrepreneurship of Somali refugees in Nairobi, including:Nairobi, including:

- the role of traditional community values and - the role of traditional community values and kinship networks in business conception, kinship networks in business conception, apprenticeship, capital formation and issues apprenticeship, capital formation and issues of credit, investment, and supply & of credit, investment, and supply & distribution of merchandize.distribution of merchandize.

Specific Research ObjectivesSpecific Research Objectives

(3) The nature of social relations between the (3) The nature of social relations between the Somali refugee business community and the Somali refugee business community and the Kenyan stakeholders.Kenyan stakeholders.

(4) Any gender dimensions in the Somali (4) Any gender dimensions in the Somali refugee business profile, especially the role, refugee business profile, especially the role, activities and challenges of Somali women.activities and challenges of Somali women.

(5) Any transnational dimensions in the Somali (5) Any transnational dimensions in the Somali refugee business operation and their refugee business operation and their dynamics.dynamics.

Study Background and JustificationStudy Background and Justification► People fleeing war from the failed state of People fleeing war from the failed state of

Somalia have accounted for the largest Somalia have accounted for the largest number of refugees in Kenya since the start number of refugees in Kenya since the start civil war in Somali in 1991.civil war in Somali in 1991.

► There are over 1 million Somali refugees in There are over 1 million Somali refugees in Kenya; most of them are in refugee camps in Kenya; most of them are in refugee camps in some government designated border outpost.some government designated border outpost.

► The refugee crisis is aggravated by periodic The refugee crisis is aggravated by periodic incidents of drought & famine in the region.incidents of drought & famine in the region.

► The refugees in camps fit into the traditional The refugees in camps fit into the traditional image of refugees.image of refugees.

Food Insecurity & Refugee Crises in the Food Insecurity & Refugee Crises in the Horn of AfricaHorn of Africa

Study Background and JustificationStudy Background and Justification► There are between 150,000 – 200,000 Somali There are between 150,000 – 200,000 Somali

refugees settled in Kenyan capital city of refugees settled in Kenyan capital city of Nairobi. Nairobi.

► The refugees in Nairobi are mostly The refugees in Nairobi are mostly concentrated in the famous Nairobi suburb of concentrated in the famous Nairobi suburb of Eastleigh - ‘Little Mogadishu.’ Eastleigh - ‘Little Mogadishu.’

► Eastleigh is a densely populated suburb with Eastleigh is a densely populated suburb with practically little or no state presence save for practically little or no state presence save for occasional intervention of security in the occasional intervention of security in the name of anti-terrorist clampdown.name of anti-terrorist clampdown.

Study Background and JustificationStudy Background and Justification► Kinship networks and clan solidarity Kinship networks and clan solidarity

underpin social order among the Somalis in underpin social order among the Somalis in Eastleigh.Eastleigh.

► Ironically, the same clan-based social Ironically, the same clan-based social structure that underpins social order in structure that underpins social order in Eastleigh is at the root of the continuing civil Eastleigh is at the root of the continuing civil war in Somalia. war in Somalia.

► Eastleigh is not just a Somali refugees’ Eastleigh is not just a Somali refugees’ haven, it is one of East Africa’s fastest haven, it is one of East Africa’s fastest growing and most globally connected growing and most globally connected trading centers. trading centers.

Study Background and JustificationStudy Background and Justification►Dominant narratives on refugees from Dominant narratives on refugees from

fragile and failed states in the Africa are fragile and failed states in the Africa are largely focused on negative stereotypes that largely focused on negative stereotypes that tend to perceive refugees as:tend to perceive refugees as:

► poverty-stricken, and unwanted parasites poverty-stricken, and unwanted parasites that bring undue pressure on meager state that bring undue pressure on meager state resources; resources;

► perpetrators of organized crime and anti-perpetrators of organized crime and anti-social behavior. social behavior.

Study JustificationStudy Justification

►The prolific business exploits and The prolific business exploits and transnational entrepreneurship of the transnational entrepreneurship of the large number of Somali refugees in large number of Somali refugees in Nairobi seems to shatter this well-Nairobi seems to shatter this well-entrenched conception.entrenched conception.

Fieldwork Methodology and Progress MadeFieldwork Methodology and Progress Made► Our fieldwork data collection is essentially based on semi-Our fieldwork data collection is essentially based on semi-

structured in-depth interview and non-participant structured in-depth interview and non-participant observation.observation.

► Fieldwork was completed between March and August 2011.Fieldwork was completed between March and August 2011.► Two Kenyan Somali female university graduates were Two Kenyan Somali female university graduates were

recruited to join the project team in the fieldwork. recruited to join the project team in the fieldwork. ► Pre-fieldwork [consultative] visits were made for Pre-fieldwork [consultative] visits were made for

reconnaissance and sensitization of targeted audience.reconnaissance and sensitization of targeted audience.► The research audience included:The research audience included:

(a)(a) Somali refugees of various generations and business Somali refugees of various generations and business clusters, as well as those not yet in any venture, clusters, as well as those not yet in any venture,

(b)(b) Kenyan police officers with experience in refugee policing Kenyan police officers with experience in refugee policing and deployment in Somali suburb of Eastleigh, and deployment in Somali suburb of Eastleigh,

(c)(c) Members of the rival Indian business community in Nairobi, Members of the rival Indian business community in Nairobi, & &

(d)(d) Some of the local Kenyans that live and work with Somali Some of the local Kenyans that live and work with Somali refugees in the Eastleigh and the adjoining suburbs.refugees in the Eastleigh and the adjoining suburbs.

Fieldwork Methodology and Progress MadeFieldwork Methodology and Progress Made► A total of 136 participants were interviewed using A total of 136 participants were interviewed using

convenience and snowball sampling methods.convenience and snowball sampling methods.► About half of the sample were ethnic Somali About half of the sample were ethnic Somali

refugees interviewed. refugees interviewed. ► At present, we are the early stage of data At present, we are the early stage of data

interrogation, interpretation and analysis.interrogation, interpretation and analysis.

Fieldwork ChallengesFieldwork Challenges► Difficulty in getting some of the Difficulty in getting some of the

respondents to speak on some of the respondents to speak on some of the seemingly sensitive issues. seemingly sensitive issues.

► Frequent interruptions in the course of the Frequent interruptions in the course of the interviews essentially because we interviews essentially because we conducted all interviews during the conducted all interviews during the respondents’ working hours.respondents’ working hours.

Figure 1.Figure 1.

Chase Bank in the Main Street of Eastleigh Chase Bank in the Main Street of Eastleigh - Nairobi, Kenya- Nairobi, Kenya..

Figure 2Figure 2

Fresh fruit hawking along the walkway of Fresh fruit hawking along the walkway of shopping malls in Eastleigh, Nairobishopping malls in Eastleigh, Nairobi

Figure 3Figure 3Financial institutions and modern shopping Financial institutions and modern shopping malls along a dilapidated murky road in the malls along a dilapidated murky road in the Eastleigh suburb of NairobiEastleigh suburb of Nairobi

Figure 4Figure 4Modern shopping malls amidst dilapidated Modern shopping malls amidst dilapidated road infrastructure in Eastleigh, Nairobiroad infrastructure in Eastleigh, Nairobi

Figure 5Figure 5

Madina Mall, a famous shopping mall in Madina Mall, a famous shopping mall in Eastleigh, NairobiEastleigh, Nairobi

FigureFigure 6 6

Street hawking in Eastleigh, Street hawking in Eastleigh, NairobiNairobi

Figure 7Figure 7Pedestrians and Shoppers in Eastleigh, NairobiPedestrians and Shoppers in Eastleigh, Nairobi

Figure 8Figure 8

A public service bus manoeuvres through a A public service bus manoeuvres through a murky road in Eastleigh, Nairobi.murky road in Eastleigh, Nairobi.

Figure 10Figure 10

A new business site under construction A new business site under construction along a murky road in Eastleigh.along a murky road in Eastleigh.

Figure 11Figure 11A modern shopping mall in Eastleigh, NairobiA modern shopping mall in Eastleigh, Nairobi

Figure 12Figure 12Shoppers and Traders in Eastleigh, NairobiShoppers and Traders in Eastleigh, Nairobi

Figure 13Figure 13

Back street hawking in Eastleigh. Back street hawking in Eastleigh.

Figure 14Figure 14

Women traders and shoppers in Eastleigh. Women traders and shoppers in Eastleigh.

Figure 15Figure 15Women street traders display their wares in Women street traders display their wares in Eastleigh, NairobiEastleigh, Nairobi

THE ENDTHE END

►Thank you for your attention.Thank you for your attention.