Kenya's Refugee Policy: Dadaab, Kakuma, and the Complex Politics of Hosting Africa's Largest Refugee Populations

Kenya hosts more than 835,000 refugees and asylum seekers, making it one of Africa's largest refugee-hosting nations and a critical player in the global displacement crisis. The country's refugee policy has evolved dramatically over the past three decades, shifting between encampment, attempted repatriation, and the groundbreaking Shirika Plan launched in March 2025 that promises to transform refugee camps into integrated urban centers by 2036.

Kenya's Refugee History: From Open Door to Encampment

Kenya's refugee story began in earnest in 1991 when civil war in Somalia triggered mass displacement across the border. The government established Dadaab refugee camp in Garissa County in 1991, initially designed to house 90,000 people. Kakuma camp followed in 1992 in Turkana County, primarily to accommodate refugees fleeing the Sudanese civil war.

The Refugees Act of 2006 formalized Kenya's encampment policy, requiring refugees to reside in designated camps rather than integrating into urban areas. This approach, while providing concentrated humanitarian assistance, also created dependency and limited refugees' economic participation. The Department of Refugee Services (DRS) under the Ministry of Interior coordinates refugee affairs, working alongside UNHCR and over 50 implementing partners.

Dadaab: The World's Largest Refugee Complex

Dadaab, located approximately 100 kilometers from the Somali border, grew into the world's largest refugee complex. As of March 2025, Dadaab hosts approximately 428,016 refugees, the vast majority being Somali nationals who fled conflict, drought, and famine. The complex consists of multiple sub-camps including Hagadera, Ifo, and Dagahaley, each functioning as small cities with markets, schools, and health facilities.

Life in Dadaab reflects decades of protracted displacement. Second and third-generation refugees born in the camp have never known Somalia, creating complex identity and nationality questions. The camp has its own economy with businesses generating an estimated KSh 2.5 billion annually, though unemployment remains above 80 percent. Education enrollment has improved with over 100 primary and secondary schools, but quality remains inconsistent and tertiary opportunities are severely limited.

Kenya has repeatedly attempted to close Dadaab, most notably in 2016 when the government announced plans to shut the camp citing security concerns linked to al-Shabaab terrorism. The Kenya High Court blocked the closure in 2017, ruling it would violate the principle of non-refoulement under international refugee law. Subsequent closure deadlines in 2019 and 2022 also passed without implementation.

Kakuma and Kalobeyei: Innovation in Turkana County

Kakuma refugee camp in Turkana County hosts approximately 303,247 refugees from South Sudan, Democratic Republic of Congo, Burundi, Ethiopia, and other nations. Unlike Dadaab's predominantly Somali population, Kakuma is remarkably diverse with over 20 nationalities represented.

The Kalobeyei Integrated Settlement, established in 2015 adjacent to Kakuma, represented Kenya's first formal experiment with refugee integration. Designed as a mixed settlement where refugees and host community members live side by side, Kalobeyei pioneered the use of cash-based assistance through the Bamba Chakula program, giving refugees market-based food choices rather than traditional rations. The settlement covers 1,500 hectares and was designed to promote agricultural self-reliance through irrigated farming plots.

However, both Kakuma and Kalobeyei face severe challenges. Since mid-2025, the World Food Programme has been forced to reduce rations to just 28 percent of the minimum food basket and suspend cash assistance due to funding shortfalls. This has left approximately 85,000 refugees (45 percent of camp populations) without adequate food assistance, triggering protests and an exodus of over 9,300 South Sudanese refugees returning to their conflict-affected homeland.

The Refugees Act 2021: A Legislative Milestone

Kenya passed the Refugees Act 2021, replacing the outdated 2006 legislation and marking a significant shift in refugee policy. The new law grants refugees the right to work, own property, access financial services, and obtain identification documents. It also creates a pathway for integration into Kenyan society through a process leading to permanent residency for refugees who have lived in Kenya for extended periods.

The Act establishes the Refugee Status Appeals Committee and strengthens the institutional framework through the Department of Refugee Services. Critically, it aligns Kenya's domestic legislation with the Global Compact on Refugees adopted in 2018, which emphasizes responsibility-sharing, refugee self-reliance, and solutions-oriented approaches. However, implementation has been slow, with many refugees unaware of their expanded rights and local authorities uncertain about enforcement.

The Shirika Plan: Transforming Camps into Cities

The most ambitious development in Kenya's refugee policy is the Shirika Plan, launched on March 28, 2025 by the Government of Kenya in partnership with UNHCR. "Shirika" means "cooperation" in Swahili, and the plan aims to transform Dadaab and Kakuma from humanitarian camps into integrated municipalities administered by their respective county governments of Garissa and Turkana.

The Shirika Plan spans eleven years (2025-2036) across three phases. The Transition Phase (2025-2028) focuses on establishing governance structures, transferring service delivery from UN agencies to county governments, and beginning infrastructure development. The Stabilization Phase (2029-2032) emphasizes economic development, job creation, and expanded public services. The Resilience Phase (2033-2036) targets full integration with refugees accessing national services alongside host communities.

With an estimated budget of $943 million, the plan is overseen by a National Steering Committee chaired by the Principal Secretary for Immigration and Citizen Services. Implementation involves collaboration between county governments (Turkana, Garissa, and Nairobi), UN agencies, development partners, and the private sector.

Challenges Facing the Shirika Plan

Despite its vision, the Shirika Plan faces significant obstacles. Host communities in Garissa and Turkana counties have expressed concerns about resource competition, with local leaders questioning whether integration will strain already underfunded health, education, and water services. County governments, which will eventually assume service delivery responsibilities, lack the administrative capacity and fiscal resources to manage populations the size of Dadaab and Kakuma.

The funding environment has deteriorated sharply. The United States, formerly Kenya's largest humanitarian donor, has drastically reduced funding under shifting foreign policy priorities. This has forced WFP to slash food assistance by 40 percent for nearly 800,000 refugees. Civil society organizations have criticized the lack of meaningful consultation with refugees themselves, noting that those most affected by the policy transformation have had limited input into its design.

Security concerns also persist. The proximity of Dadaab to the Somali border continues to raise counterterrorism considerations, with the Kenyan military maintaining operations in southern Somalia under the African Union Mission. Balancing integration with security imperatives requires careful policy calibration that has yet to be fully articulated.

Urban Refugees: Nairobi's Hidden Population

While policy discussions focus on Dadaab and Kakuma, an estimated 100,000 refugees live in Nairobi and other urban centers, many without formal authorization. Eastleigh neighborhood in Nairobi, known as "Little Mogadishu," hosts a vibrant Somali refugee community with businesses generating billions of shillings annually. Urban refugees face unique challenges including higher living costs, limited access to humanitarian assistance, xenophobia, and police harassment.

The Refugees Act 2021 provides a framework for urban refugees to register and access services, but practical implementation remains inconsistent. Many urban refugees work in the informal economy, contributing to Kenya's GDP without formal recognition or labor protections. The Shirika Plan includes Nairobi as one of its implementation areas, but the modalities for urban refugee integration differ significantly from the camp transformation model.

Economic Impact and Refugee Contributions

Research consistently shows that refugees contribute positively to Kenya's economy. The Turkana and Garissa county economies depend significantly on the humanitarian infrastructure supporting refugee camps, with thousands of Kenyan nationals employed by UN agencies and NGOs. Refugee entrepreneurship, particularly in Dadaab's and Eastleigh's marketplaces, creates economic linkages that benefit both refugee and host communities.

A World Bank study estimated that providing refugees with the right to work could increase Kenya's GDP and generate tax revenue that offsets the costs of hosting. The Kalobeyei settlement model demonstrated that cash-based assistance stimulates local markets more effectively than in-kind food distribution, with each dollar of cash assistance generating $1.50 in local economic activity.

International Responsibility-Sharing and Kenya's Role

Kenya has been vocal in international forums about the need for equitable responsibility-sharing in refugee hosting. At the Global Refugee Forum, Kenya has consistently argued that countries hosting large refugee populations should receive greater international support, including development financing, trade concessions, and resettlement quotas from wealthy nations.

The country's participation in the Comprehensive Refugee Response Framework (CRRF) and the Intergovernmental Authority on Development (IGAD) Nairobi Declaration on Somali refugees reflects its commitment to regional solutions. Kenya has also engaged with the European Union, which provides significant funding through the EU Emergency Trust Fund for Africa, linking refugee support to broader development objectives in host communities.

The Path Forward: Balancing Hospitality and National Interests

Kenya's refugee policy stands at a crossroads. The Shirika Plan represents the most progressive approach to refugee hosting in Africa, potentially creating a model for other nations. However, success depends on sustained international funding, genuine community consultation, effective governance structures, and political will to see integration through despite domestic pressures.

For the more than 835,000 refugees calling Kenya home, the stakes could not be higher. The transition from aid dependency to self-reliance, from camps to communities, and from temporary shelter to permanent belonging represents both an enormous opportunity and a profound challenge. How Kenya navigates this transformation will shape refugee policy across the African continent for generations to come.