Kenyan IDP Leaders Threaten Court Action Over Disputed £40 Million Compensation Fund
Nairobi, 14 February 2026
Political leaders are demanding enforcement of Kenya’s 2012 IDP Act as controversy erupts over a £40 million compensation fund approved by Parliament. Only 3,700 of 30,000 profiled IDPs in Luo Nyanza received reduced payments of £312 instead of the promised £1,250 per household, whilst other regions allegedly received up to £2,812 per family.
Fourteen Years of Broken Promises
The dispute centres on the Prevention, Protection and Assistance to Internally Displaced Persons and Affected Communities Act, 2012, which was assented to by former President Mwai Kibaki but has remained largely unimplemented for 14 years [1]. Nelson Owegi, the Nyanza IDPs chapter chair, speaking in Kisumu on 14 February 2026, accused the government of treating the legislation as a ‘ceremonial document’ rather than operational policy [1]. ‘The 2012 Act was not meant to be a ceremonial document. It was supposed to guide how this country treats its displaced citizens with dignity. For 14 years, that policy has not been operationalised. That is why we are seeing confusion, discrimination and selective payments,’ Owegi stated [1].
Dramatic Payment Reductions Spark Outrage
The financial discrepancies have become a flashpoint for IDP grievances. According to Owegi, government officials initially agreed to compensate each household with Ksh200,000, but this amount was subsequently reduced to Ksh50,000 without explanation [1]. ‘We sat down with government officials and agreed on Sh200,000 per household. How did that suddenly shrink to Sh50,000? Our people signed documents; they were verified, and then the promise changed without explanation,’ Owegi explained [1]. The reduction represents a 75 per cent cut from the originally agreed compensation amount. Of the 30,000 profiled IDPs in Luo Nyanza, only 3,700 individuals received the reduced payment of Ksh50,000 each [1].
Regional Disparities in Compensation Allocations
The controversy deepens when examining compensation patterns across different regions of Kenya. IDPs in Central Kenya and the Rift Valley allegedly received significantly higher compensation packages, ranging between Ksh400,000 and Ksh450,000 per household, with some recipients also receiving land allocation [1]. Meanwhile, Luo Nyanza allegedly received Ksh200 million, which was distributed pro rata among eligible beneficiaries [1]. In Kisii and Nyamira counties, a controversial list of 15,000 IDPs is expected to benefit from part of the Sh6.5 billion allocation [1]. State records indicate that 18,000 IDPs were profiled in the Nyanza region under Regional Commissioner Francis Mutie, creating a contested discrepancy with the 30,000 figure cited by IDP leadership [1].
Legal Threats Over New Compensation Rounds
IDP leadership has issued stark warnings against proceeding with selective compensation for victims of the 2017/18 unrest whilst earlier victims from the 2007/08 post-election violence remain uncompensated [1]. ‘We will not sit back and watch history repeat itself… If the government compensates 2017/18 victims and ignores those of 2007/08 who are still unpaid, we will move to court. Justice cannot have phases,’ Owegi declared [1]. The IDP leadership is calling for the government to revive the secretariat established under the 2012 Act and operationalise the National Consultative Coordination Committee on IDPs alongside President William Ruto’s team led by Prof. Makau Mutua [1]. ‘All we are asking for is fairness, transparency and respect for the law… Let the government implement the IDPs Act in totality. Only then can we talk about new compensation. Otherwise, this country will continue recycling injustice,’ Owegi concluded [1].