UN Grants Kakuma Refugees £180 Each to Start Small Businesses in Self-Reliance Push
Kakuma, 4 February 2026
The UNHCR has launched a groundbreaking programme providing 30,000 Kenyan shillings to refugees in Kakuma camp to establish small businesses, marking a strategic shift from dependency to economic empowerment. This initiative targets the camp’s 250,000 residents, including 25,000 Burundians, offering non-repayable grants alongside business training. Refugees work in groups of three under community oversight, with the goal of achieving financial independence within four months. The programme addresses growing frustration from reduced humanitarian aid whilst maintaining refugees’ existing support categories. However, some beneficiaries fear success might jeopardise future assistance, highlighting the delicate balance between fostering self-reliance and maintaining essential support systems in one of Africa’s largest refugee settlements.
How the Programme Works
The self-reliance initiative operates through a carefully structured system that groups refugees into teams of three who know each other and receive approval from their Block Leader [1]. Each group receives 30,000 Kenya shillings, equivalent to approximately US$232 [1]. What distinguishes this programme from traditional loans is that the funding is non-repayable, as confirmed by a Burundian refugee beneficiary who noted: “What we appreciate most is that the money we receive is non-repayable” [1]. Before receiving funds, beneficiaries must complete business management training that is specifically tailored to either starting new ventures or developing existing businesses [1].
Eligibility and Target Groups
The UNHCR has established a four-tier social categorisation system for refugees based on their income and lifestyle [1]. The programme specifically targets refugees in the second category, who are selected based on their existing small businesses or projects that require funding [1]. The first two categories are considered vulnerable and continue to receive targeted assistance, whilst the final two categories no longer receive aid due to their presumed self-reliance [1]. This targeted approach ensures that resources reach refugees who demonstrate entrepreneurial potential but still require support to achieve economic independence.
Timeline and Monitoring Structure
The programme follows a structured timeline with clear expectations for beneficiaries. Regular monitoring is provided by a UNHCR partner NGO throughout the process [1]. After approximately four months, beneficiaries are expected to become self-reliant and capable of managing their businesses independently [1]. This timeframe represents a relatively rapid transition from dependency to self-sufficiency, reflecting the programme’s ambitious goals for economic empowerment within the refugee camp setting.
Challenges and Concerns
Despite the programme’s positive reception, some refugees remain sceptical about potential consequences of business success. Their primary concern centres on whether successful enterprises might result in reclassification from the second category to less vulnerable groups that receive no assistance [1]. The UNHCR has addressed these fears by reassuring refugees that this funding has no impact on their social categorisation [1]. However, the organisation maintains that its primary objective remains promoting financial self-sufficiency to reduce dependence on humanitarian aid, which faces limitations due to the global economic situation [1]. The Kakuma camp and its extension in Kalobeyei currently host more than 250,000 refugees, including approximately 25,000 Burundians [1]. The combination of decreased humanitarian aid and limited economic opportunities has created a sense of injustice and frustration that threatens stability in this vast camp, located in an already fragile region [1].