How direct cash payments are giving refugees in Kenya the power to choose
Kakuma, 13 September 2026
The UNHCR’s cash-based assistance in Kakuma and Kalobeyei empowers refugees by replacing traditional aid with direct bank transfers, boosting local economies and restoring personal dignity.
Understanding the Cash-Based Intervention Framework
The United Nations High Commissioner for Refugees (UNHCR) has structured its Cash-Based Interventions (CBI) to provide direct financial support to refugees and asylum-seekers residing in Kenya’s Kakuma Camp and Kalobeyei Settlement [1]. By transitioning from traditional in-kind aid to direct banking, the programme allows beneficiaries to manage their household budgets independently [1]. To implement this secure financial network, the UNHCR has partnered with local financial institutions, delivering payments through KCB Bank for residents in Kakuma and Equity Bank for those in the Kalobeyei Settlement [1].
Eligibility and Maintaining Active Status
To access these funds, beneficiaries must meet strict eligibility criteria and maintain an active status within the UNHCR system [1]. This requires refugees to keep their address and location details updated in the UNHCR database [1]. Additionally, beneficiaries must regularly verify their presence by attending scheduled Proof of Life (PoL) or General Food Distribution exercises [1]. If a household fails to participate, their status is set to inactive, making them ineligible for cash assistance [1]. Furthermore, accounts left inactive for more than six months without PoL verification face dormancy, which can result in the reversion of remaining funds to the UNHCR, though this decision can be appealed [1].
Accessing Grants for Shelter and Hygiene
Under the ‘Cash for Shelter’ initiative in Kalobeyei, conditional grants are provided to help families upgrade temporary structures into permanent timber housing [1]. Families of 1 to 5 members are eligible for one standard shelter, valued between 153,500 KES and 163,840 KES depending on materials [1]. Larger families of 6 to 10 members receive either one double shelter (valued at 280,900 KES) or two standard shelters, while households with 11 or more members receive one double shelter and one standard shelter [1]. Families also receive 1,266 KES per iron sheet, capped at 18 sheets for standard shelters—amounting to 22788 KES—and 36 sheets for double shelters, which totals 45576 KES [1]. These grants are disbursed in three instalments based on construction progress and must be spent on materials, labour, and household latrines [1]. Latrine grants total 24,500 KES, split into a first instalment of 5,500 KES and a second of 19,000 KES, which is calculated as 24500 KES [1].
Specific Provisions for Women and Minor Children
The CBI framework also integrates targeted support for hygiene management and vulnerable demographics [1]. Households containing women aged between 11 and 50 receive dedicated cash assistance for sanitary products, calculated based on a local market rate of 100 KES per 8-pack of sanitary pads [1]. However, banking regulations in Kenya restrict minor-led households [1]. Consequently, child-headed households where the head is under 18 years of age are ineligible for direct cash transfers and receive in-kind hygiene support instead [1]. Unaccompanied Minors (UAM) may still access cash assistance, but only through verified foster parents whose care arrangements have been officially confirmed by the UNHCR and its child protection partner, Terre des Hommes (TDH) [1].
Navigating Transaction Fees and Accountability
Beneficiaries must manage their transactions carefully to minimise banking costs [1]. For Kakuma residents using KCB Bank, the first withdrawal of up to 5,000 KES at an agent or counter is free, and point-of-sale (POS) transactions are free, but ATM withdrawals cost 30 KES, and subsequent or over-limit transactions cost 100 KES [1]. In Kalobeyei, Equity Bank users face an ATM withdrawal fee of 36 KES, over-the-counter fees of 120 KES, and agent withdrawal fees ranging from 30 KES to 270 KES, though the second withdrawal after a UNHCR disbursement is free [1]. Equity Bank also adds 30 KES to each transfer to help cover the initial agent withdrawal fee [1]. For both banks, replacing a lost, stolen, or damaged ATM card incurs a 500 KES fee [1]. To protect the integrity of the programme, the UNHCR maintains a zero-tolerance policy for fraud and misconduct [1]. Any issues can be reported confidentially via the toll-free helpline 1517, or by emailing [email protected] for fraud and [email protected] for general misconduct [1].