UN Launches Direct Cash Payments to Replace Food Aid in Kenya's Refugee Camps
Kakuma, 27 March 2026
The United Nations has revolutionised refugee assistance by introducing cash-based interventions in Kenya’s Kakuma and Kalobeyei camps, allowing over 200,000 refugees to receive direct financial support instead of traditional food parcels. This groundbreaking shift enables refugees to prioritise their own spending on essentials like shelter, food, and healthcare, delivered through partnerships with Equity Bank and KCB Bank with varying transfer amounts based on household size and specific needs.
Banking Infrastructure Supports Cash Distribution
The cash assistance programmes in Kalobeyei Settlement and Kakuma Camps are delivered through established banking partnerships, with Equity Bank serving Kalobeyei residents and KCB Bank managing payments for Kakuma camp inhabitants [1]. This infrastructure enables refugees to access their funds through multiple channels, including ATM withdrawals, over-the-counter transactions, and direct point-of-sale purchases at local merchants [1]. The banking system provides refugees with dignity and autonomy whilst integrating them into the formal financial system, a significant departure from traditional aid distribution methods [1].
Five Distinct Grant Categories Address Varied Needs
UNHCR currently disburses five separate cash grants to refugees and asylum-seekers, each targeting specific needs within the camp populations [1]. The most substantial programme, ‘Cash for Shelter’, supports refugee families in Kalobeyei by enabling them to convert temporary accommodation into permanent housing structures [1]. This initiative is assessed by UNHCR’s multi-functional team and includes provisions for household latrines, with UNHCR providing water for construction purposes [1]. Child-headed households receive special attention through direct support or via foster parents, coordinated by UNHCR’s child protection partner, TDH [1].
Transfer Values Reflect Household Composition
The shelter grant system operates on a tiered structure based on household size, with families of 1-5 members qualifying for one standard shelter, households of 6-10 members receiving either one double shelter or two standard shelters, and families with 11 or more members entitled to a double shelter plus one standard shelter [1]. A standard shelter grant totals between KES 153,500 and KES 163,840, whilst a double shelter grant amounts to KES 280,900 [1]. Additional costs apply for iron sheets, with KES 1,266 allocated per sheet - standard shelters requiring 1-18 sheets and double shelters needing 1-36 sheets [1]. The cash for latrine component is disbursed in two instalments: KES 5,500 with the shelter’s first payment and KES 19,000 with the second, totalling KES 24,500 [1].
Maintaining Eligibility Through Regular Updates
To maintain eligibility for cash-based interventions, refugees and asylum-seekers must attend the Proof of Life exercise or General Food Distribution and regularly update their household information with UNHCR [1]. These updates include changes in focal points, new-born registrations, and individual activation or deactivation status, which can be processed via field posts or email communication [1]. Inactive individuals become ineligible for CBI payments, whilst household changes such as new births or family reunification only become valid for payments after database updates are completed [1]. UNHCR may revert assistance amounts if bank accounts remain inactive for over six months and families fail to attend required distributions, though account holders retain the right to appeal such decisions [1].