How Direct Cash Transfers Are Changing Refugee Aid in Kenya
Kakuma, 15 August 2026
The UNHCR’s cash-transfer initiative in Kenya empowers refugees by funding permanent housing and essentials directly through local banks, boosting dignity and the regional economy this August.
The Mechanism of Cash-Based Interventions
The United Nations High Commissioner for Refugees (UNHCR) operates Cash-Based Interventions (CBI) in Kenya’s Kalobeyei Settlement and Kakuma Camps to provide direct financial assistance [1]. By shifting from traditional in-kind aid to direct cash transfers, the programme allows refugees and asylum-seekers to purchase food, shelter, education, and healthcare according to their own immediate priorities [1]. To facilitate these secure financial transfers, the UNHCR partners with local financial institutions, specifically Equity Bank and KCB Bank, integrating beneficiaries directly into the formal banking system [1][GPT].
Eligibility and Accessing the Service
To access cash assistance, beneficiaries must maintain an active status within the UNHCR database [1]. This requires individuals to keep their address and location data continuously updated and to participate in regular administrative verification exercises [1]. Specifically, beneficiaries must attend the Proof of Life (PoL) exercise or participate in the General Food Distribution [1]. Maintaining this active status is critical; if a refugee family remains inactive in the database for more than six months, their cash assistance funds may be reverted and lost [1].
Cash for Shelter Grants and Structural Upgrades
In the Kalobeyei Settlement, the UNHCR Multi-Functional Team (MFT) conducts technical assessments to identify families eligible for “Cash for Shelter” grants, which are designed to upgrade temporary shelters into permanent housing [1]. For child-headed households, the non-governmental organisation Terre des Hommes (TDH) manages these assessments to ensure vulnerable children are protected [1]. Once approved, the shelter grant is disbursed in three distinct instalments, each contingent upon reaching specific construction milestones [1]. These funds are strictly restricted to the purchase of approved building materials, the construction of household latrines, and local labour costs [1].
Understanding Grant Values and Material Costs
The total value of the shelter grant is determined by the size of the household [1]. Families containing one to five people receive funding for one standard shelter, amounting to a total value between KES 153,500 and KES 163,840 [1]. Households with six to ten people are eligible for either one double shelter or two standard shelters, valued at a total of KES 280,900 [1]. Larger households of 11 or more people receive one double shelter plus one standard shelter [1]. As part of the construction budget, iron sheets are priced at KES 1,266 per unit [1]. A standard shelter requires between 1 and 18 iron sheets, representing a material cost of up to KES 22788 [1], while a double shelter requires up to 36 iron sheets, which equates to a maximum cost of KES 45576 [1].
Banking Fees and Transaction Guidelines
Beneficiaries must navigate specific transaction fees depending on whether they host accounts with KCB Bank in Kakuma or Equity Bank in Kalobeyei [1]. For both banks, replacing a lost ATM card incurs a flat fee of KES 500 [1]. For KCB Bank users, Point of Sale (POS) purchases are free, and the first withdrawal at an agent or counter is free up to KES 5,000 [1]. KCB ATM withdrawals cost KES 30, while subsequent withdrawals or those exceeding the initial limit incur a KES 100 fee [1]. For Equity Bank users, POS purchases are also free, but ATM withdrawals cost KES 36, and over-the-counter withdrawals cost KES 120 locally or KES 180 for intra-branch transactions [1]. Equity Bank agent withdrawals are tiered between KES 30 and KES 270; however, the second agent withdrawal following a UNHCR transfer is free, and Equity Bank adds KES 30 to each transfer specifically to offset the first agent withdrawal fee [1].
Anti-Fraud Measures and Accountability Channels
The UNHCR maintains a strict zero-tolerance policy regarding exploitation and fraud [1]. All services, assessments, and cash distributions provided by the UNHCR and its partners are entirely free of charge [1]. Refugees and asylum-seekers are not required to pay any extra fees to banks, suppliers, partners, or UNHCR staff to access their cash entitlements [1]. Any demand for payment in exchange for services is classified as fraud and should be reported immediately [1]. Beneficiaries can report misconduct confidentially through the Kenya-wide toll-free helpline by dialling 1517, or by sending a secure fax to the UNHCR Inspector General’s Office at +41 22739 7380 [1].