Kenya's Refugee Crisis: Strategic Policies for Sustainable Socioeconomic Inclusion

The World Bank's report highlights the significant challenges faced by refugees and host communities in Kenya, emphasizing the need for targeted policy interventions and a holistic approach to improve socioeconomic integration, resilience, and reduce spatial inequalities. Despite progress, refugees remain reliant on aid due to restricted movement and limited access to employment opportunities.

The World Bank’s study presents a detailed analysis of the living conditions and challenges faced by refugees and host communities in Kenya. The study, known as the Kenya Longitudinal Socioeconomic Study of Refugees and Host Communities (K-LSRH), is the first of its kind in Kenya, providing nationally comparable data that captures the socioeconomic realities of both refugees and their hosts. The survey, conducted between June 2022 and 2023, covered various locations, including Kakuma, Dadaab, Kalobeyei, and urban centers such as Nairobi, Mombasa, and Nakuru. This comprehensive approach offers critical insights into the complexities of refugee life in Kenya, highlighting both the successes and ongoing challenges in the country’s efforts to integrate refugees into its socioeconomic fabric.

Kenya: A Major Refugee-Hosting Nation Facing Ongoing Challenges

Kenya, home to over 774,000 registered refugees and asylum seekers as of May 2024, stands as one of the largest refugee-hosting nations globally. The country hosts refugees primarily from neighboring nations such as Somalia and South Sudan, many of whom have lived in protracted displacement situations for decades. Despite Kenya’s evolving policies aimed at improving the legal and regulatory environment for refugees, significant challenges remain. The K-LSRH findings underscore the difficulties that refugees face in accessing essential services, employment, and economic opportunities. These challenges are exacerbated by restrictions on movement and the difficulties refugees encounter in obtaining the necessary documentation, such as work permits and business licenses. Consequently, many refugees remain heavily reliant on humanitarian aid, with limited prospects for achieving self-reliance or improving their socioeconomic status.

The Stark Reality of Multidimensional Poverty

The report highlights the stark realities of multidimensional poverty that affect both refugees and host communities, particularly in camp settings. Multidimensional poverty, which encompasses indicators such as education, employment, energy, housing, water, sanitation, and nutrition, is significantly higher in camp areas compared to urban settings. The poverty gap between refugees and hosts is also more pronounced in these areas, with refugees in camps experiencing some of the highest rates of deprivation. For instance, the report notes that refugees living in urban areas outside Nairobi, such as Mombasa and Nakuru, have the highest urban poverty rates, though these are still lower than the lowest rates observed in camp areas like Dadaab. This urban-rural divide is a critical issue, as it reflects broader spatial inequalities within Kenya, where arid regions hosting most refugee camps are marked by underdevelopment and limited infrastructure.

Barriers to Employment and Economic Integration

The K-LSRH findings also shed light on the barriers to employment that both refugees and host communities face, with women being disproportionately affected. The challenges of accessing employment are compounded by the limitations on movement imposed by the encampment policy, which restricts refugees to designated areas unless they obtain special permits. These restrictions, coupled with the difficulty of acquiring work permits, significantly hinder refugees' ability to participate in the labor market or engage in business activities. As a result, many refugees are employed as ‘incentive workers’ by humanitarian organizations, often earning lower wages than their Kenyan counterparts for equivalent work.

Policy Interventions for Enhanced Integration

The report emphasizes the need for targeted policy interventions to address these challenges and enhance the socioeconomic integration of refugees. In the short term, easing restrictions on the right to work and movement is crucial. Streamlining procedures for obtaining work permits, movement passes, and access to banking services can help refugees transition towards self-reliance, ultimately reducing the long-term costs of hosting them. Additionally, initiatives to support job searches, vocational training, and self-employment opportunities, particularly for women and youth, are essential in empowering refugees to integrate into the labor market.

A Holistic Approach for Long-Term Resilience

In the medium to long term, the report advocates for addressing spatial inequalities through place-based development in refugee-hosting areas. This approach would not only improve the welfare of refugees and host communities but also strengthen household resilience to economic and environmental shocks. Incorporating psychosocial support into these development efforts is also highlighted as a critical component for building long-term resilience among refugees. Furthermore, the report calls for the continued implementation of a progressive policy framework that aligns with international standards and supports the transition from humanitarian aid to sustainable development initiatives.

Overall, the K-LSRH provides a nuanced understanding of the challenges and opportunities in Kenya’s efforts to integrate refugees into its socioeconomic landscape. The findings underscore the importance of a holistic approach that addresses both the immediate needs and the long-term aspirations of refugees and host communities, with the ultimate goal of fostering resilience, reducing poverty, and closing the spatial inequalities that persist in Kenya.