Kakuma, a windswept location in the far reaches of northwest Kenya, is renowned for its notable refugee camp, originally not intended for permanent resettlement. Decades ago, it emerged as a sanctuary for those fleeing turmoil from nations such as South Sudan, Ethiopia, and Congo. Today, over 300,000 refugees reside here, mostly dependent on aid for their survival. Recent tensions arose between the residents and police as resources dwindled, punctuated by protests over reductions in food allocations.
In a significant shift, the Kenyan government along with aiding organizations have embarked on a journey to transition Kakuma into a vibrant city. This transformation designates Kakuma as a municipality that, while still under the guidance of the United Nations, will eventually be governed by local authorities. This shift aligns with a broader Kenyan policy of integrating refugees into mainstream society while reducing prolonged aid dependency.
Self-sufficiency is the new mandate for Kakuma’s refugees, who are increasingly expected to rely on earning income rather than aid, despite the nearest urban area being an arduous eight-hour drive away. Full autonomy, however, remains challenging. Refugee inclusion into Kenyan citizenship is rare. Legislation passed in 2021 grants them the formal right to work, but employment opportunities remain limited to a select few.
The environment prohibits livestock maintenance due to its dry conditions and limited space, and the scarcity of water makes agriculture untenable. Consequently, many refugees turn toward entrepreneurship as a potential livelihood path. However, launching a business is fraught with difficulties, notably the high-interest loan rates—often around 20%—provided by local banks. The necessary documentation and collateral required for such loans are inaccessible for most refugees.
Charities like Inkomoko, which offers financial education and affordable loans to enterprises in refugee-having regions, seek to unlock this untapped potential. Julienne Oyler, who leads Inkomoko, emphasizes the inherent entrepreneurial aptitude of refugees, citing their resilience, resourcefulness, networking capabilities, and adaptability as qualities for business excellence. Alternatives such as microlending through fellow aid groups or community-driven financial efforts offer some monetary support, though typically not enough for anything beyond minimal startups.
One success story involves Adele Mubalama, who endured a harrowing trek through multiple countries from Congo to Kakuma with her children in 2018. Through partnerships with humanitarian groups, she mastered tailoring, initially producing masks during the pandemic. Securing a low-interest loan from Inkomoko, Mubalama expanded her business, employing over two dozen people and achieving a significant profit.
Similarly, refugee Mesfin Getahun leveraged Inkomoko’s loans to transform his small shop into a leading retail chain in Kakuma. With additional support connecting refugee entrepreneurs with suppliers across Kenya, barriers such as costly intermediary expenses are reduced, facilitating Kakuma’s economic engagement with the broader Kenyan economy.
Despite these efforts, skepticism exists about Kakuma’s potential to truly thrive as a self-sufficient city. Obstacles like inadequate water resources and infrastructure underpin concerns that Kakuma’s economy cannot organically sustain itself. Associate Research Professor Rahul Oka, from the University of Notre Dame, stresses this point, suggesting that economic development cannot be manufactured purely through social engineering.
The lack of substantial two-way trade and restrictions on refugee movement further complicate economic growth. Movement limitations, in particular, prevent refugees from exploring opportunities in other areas of Kenya with better job prospects, observes Freddie Carver of ODI Global.
In discussions involving refugee rights, Carver notes a shift away from legal protections towards promoting self-sufficiency. This swing, however, risks overshadowing essential issues of rights and citizenship unless a balanced approach is reinstated, ensuring meaningful progress and transformation for Kakuma’s refugee population.