Kenya has launched a plan to convert its refugee camps into formal municipalities, abandoning decades of humanitarian policy that kept displaced populations in temporary settlements dependent on international aid.
The Shirika Plan, announced in March, targets 843,165 refugees and asylum seekers in the Dadaab and Kakuma camps alongside host communities. The government expects the policy to integrate more than 900,000 people into Kenya’s national systems by 2035.
The shift comes as donor fatigue increases and traditional refugee funding models face strain. Kenya has hosted refugees for over three decades, with camps that cost hundreds of millions annually in international support. The policy builds on Kenya’s 2021 Refugee Act, which grants displaced people work rights, freedom of movement, and access to financial services.
Over 70,000 refugees have enrolled in Kenya’s universal health coverage since the law took effect. Refugee businesses in Kakuma and Dadaab generate significant economic activity under current restrictions, suggesting substantial potential from full integration.
Increased financial inclusion through partnerships with Kenya Commercial Bank and expanded mobile money services could deepen capital markets. The policy also attracts development finance, with institutions like the IFC viewing refugee integration as commercially viable.
Kenya’s approach directly addresses what peace researchers term the institutional foundations of stable societies. The Institute for Economics and Peace identifies eight factors that predict societal resilience, including effective governance, equitable resource distribution, and social cohesion.
The plan converts camps into county-administered municipalities, bringing refugee services under transparent government systems rather than parallel humanitarian structures. Turkana and Garissa counties will assume responsibility for service delivery previously managed by UN agencies and NGOs.
This administrative shift aims to reduce corruption risks inherent in aid-dependent systems whilst improving service quality through established government channels. County officials will oversee education, healthcare, and infrastructure rather than international organisations operating separate systems.
The change aims to address group grievances that emerge when host communities receive fewer services than refugee populations. Integrated service delivery ensures both groups access the same government programmes, reducing competition for resources.
Human capital investment forms a central component. Current camp schools operate at 300% capacity with insufficient resources. The plan commits to education infrastructure meeting national standards, skills recognition programmes, and vocational training aligned with labour market demands.
The plan’s design targets the structural foundations of resilient societies. The Institute for Economics & Peace’ Positive Peace framework identifies eight pillars that contribute to societal stability – Well-Functioning Government, Low Levels of Corruption, Sound Business Environment, Equitable Distribution of Resources, Acceptance of the Rights of Others, Free Flow of Information, High Levels of Human Capital, and Good Relations with Neighbours.
Converting camps to municipalities can strengthen Well-Functioning Government by forcing capacity building in regions that historically received minimal investment. County administrations must develop competence to manage integrated populations, creating institutional spillovers that benefit all residents.
Economic integration offers Sound Business Environment improvements. Granting work rights to 843,000 people expands Kenya’s formal economy whilst partnerships with institutions like Kenya Commercial Bank aim to deepen financial inclusion. Development finance follows, with the IFC and other institutions viewing refugee integration as commercially viable rather than charitable obligation.
Equitable Distribution of Resources represents perhaps the most critical peace dividend. Current parallel systems can create resentment when refugees receive superior healthcare and education, compared to impoverished host communities. Unified service delivery ensures both groups access identical government programmes, reducing zero-sum competition that breeds social tension.
The High-Levels of Human Capital implications extend beyond refugee communities. Education integration addresses severe overcrowding in camp schools whilst expanding facilities for host community children who previously lacked adequate schooling. Healthcare integration through universal coverage extends quality services to underserved regions.
Good Relations with Neighbours improve through shared economic opportunities and infrastructure investments that create common interests between refugee and host populations. The policy framework’s explicit protection for gender-based violence survivors and minorities can help advance acceptance of the rights of others.
Success does depend on implementation quality. Poor consultation during policy development perhaps suggests weakness in the Free Flow of Information – specifically top-down planning rather than participatory approaches. Information flow should allow refugees to have a voice in governance decisions, not just access to government systems. Municipal conversion should seek to create genuine participation opportunities, rather than extending existing exclusions.
Administrative capacity in Turkana and Garissa counties is limited, which has raised questions about their ability to manage expanded responsibilities. Both regions rank among Kenya’s poorest, with weak infrastructure and service delivery systems.
In terms of financing, the government has secured initial development partner commitments but requires sustained international support through 2035. The plan’s three phases demand substantial infrastructure investment and institutional strengthening.
Critics highlight insufficient consultation with refugee communities during policy development. Some refugee-led organisations argue their expertise has been overlooked in favour of top-down planning approaches.
Success could influence refugee policy across Africa, where forced displacement currently affects up to 40m people. The African Union has endorsed local integration as a preferred solution, but few countries have attempted systematic implementation.
European policymakers facing migration pressures are also monitoring Kenya’s experiment. The EU has increased funding for refugee-hosting countries as part of efforts to reduce onward migration to Europe.
Failure risks reinforcing arguments for restrictive border policies. Several African countries have threatened camp closures or forced repatriations, citing security concerns and resource constraints.
Private sector engagement distinguishes Kenya’s approach from traditional donor-funded programmes. Public-private partnerships will finance infrastructure development, whilst concessional lending supports refugee and host community enterprises.
The timing coincides with growing commercial interest in refugee economies. Companies including Mastercard and Vodafone have launched financial inclusion initiatives targeting displaced populations globally.
Climate considerations add urgency. Kenya faces increasing displacement from droughts and floods, making resilient integration models essential for future stability. The plan’s final phase focuses specifically on climate adaptation and disaster preparedness.
The plan’s effectiveness will depend on concrete outcomes rather than policy announcements. Key metrics include employment rates, business formation, school enrollment, and social cohesion indicators between refugee and host populations.
Economic integration will need to deliver tangible benefits to host communities to maintain political support. Infrastructure improvements, job creation, and expanded services represent essential components of sustained success.
The three-phase timeline acknowledges that social transformation requires patience. Transition efforts through 2027 focus on regulatory frameworks and service integration. Stabilisation until 2031 aims to consolidate gains before the final resilience phase through 2035.
For the international community, Kenya offers a test of whether refugee integration can succeed at scale. The alternative – indefinite housing of displaced populations – serves neither humanitarian nor economic interests as forced displacement reaches record levels globally.
Despite the increasing number of initiatives all over the world, the current situation highlights the lack of coordination between stakeholders.
With more than 30 years’ experience working on peace and development in Kenya, this local says Positive Peace has potential to change things for...
Identifying and measuring the factors that drive peace
Analysing the factors that sustain peace.
