Influence of Social Capital on Diversification of Livelihood in Slum Areas in Nairobi, Kenya

Abstract

Global population is on the increase and it is estimated that by 2030 world population will be 8.5 billion people. A resultant challenge that emerges is one of ensuring sustainable livelihoods in communities, and especially slum areas of developing countries.  Hence urban areas have become centres of focus as increasingly majority of the population is residing in urban areas, in which slums have also developed and expanded. In order to achieve sustainable livelihoods then there is need for diversification of the livelihoods by the households living in slum areas. The main focus of this article is to explore how social capital influences diversification of livelihoods.  The article is based on a study that was carried out in Mukuru slums in Nairobi County Kenya, with a sample of 397 household heads. It was found out that at least 49 per cent of the household heads were in different social groups; and in those groups the main reason for joining was basically to get money through the savings and to have access to loans with which to invest in diversified livelihood pursuits. It was found out that social capital was crucial to diversification through the different groups that helped in providing business capital, ideas, loans that enabled them to engage in more than one livelihood activity.