Kenya launches Shirika Plan to transform refugee camps into integrated municipalities
Kenya is shifting from camp-based refugee management to a government-led model that integrates nearly a million displaced people into local economies, under a three-phase plan expected to cost $943 million.
Kenya has launched an ambitious new refugee policy that marks a significant departure from decades of camp-based management. The Shirika Plan, developed jointly by the Kenyan government and the UN Refugee Agency (UNHCR) and rolled out in March 2025, seeks to move away from encampment towards integrating refugees into local economies and host communities.
A shift in approach
The plan represents a major overhaul of how Kenya manages its refugee population — currently the fifth largest in Africa, with nearly a million people displaced from conflict in South Sudan, Somalia and beyond. Rather than keeping refugees confined to long-term camps administered primarily by the UN, the Shirika Plan places management authority with county governments and centres on allowing refugees to work, access public services, and contribute economically.
The policy builds on Kenya's Refugee Act of 2021, which emphasised protection and inclusion, and draws lessons from two earlier pilot schemes: the Kalobeyei Integrated Socio-Economic Development Plan and the Garissa Integrated Socio-Economic Plan. Both demonstrated that refugee integration could strengthen economies on both sides — benefiting displaced populations and the Kenyan communities that host them.
What the plan will do
The Shirika Plan will convert existing refugee camps into county-administered municipalities. Infrastructure investment — roads, water systems, healthcare and education — will be directed to these areas, serving refugees and host populations alike. The framework aligns with broader UN refugee policy, which encourages governments to move beyond emergency aid models towards sustainable inclusion.
The plan is structured around six pillars, including sustainable economic development and climate action. Implementation is phased over twelve years and will require an estimated $943 million in funding.
Three phases over twelve years
The first phase (2025–2028) focuses on transition, establishing regulatory and policy frameworks, converting camps into municipalities, and building local government capacity. The second phase (2029–2032) evaluates progress, strengthens institutional systems and financial management, and emphasises peaceful coexistence between refugees and host communities. The final phase (2033–2036) aims to build resilience and reduce dependence on external support by diversifying revenue streams and fortifying financial structures.
Why Kenya is making this move
Kenya's relative political stability, strong Human Development Index, and established secondary economy have made it a regional refuge. A largely welcoming host society has also played a role. These factors, combined with the burden of hosting nearly a million displaced people over many years, have prompted the government to explore a model that could ease both the humanitarian strain and create economic opportunity.
The plan is closely aligned with UN refugee frameworks that encourage governments to move beyond emergency assistance towards allowing refugees to work, use public services and contribute to local economies.
Experts note the plan presents both significant opportunities and challenges. Success will depend on sustained funding, coordination between national and county governments, and the willingness of host communities to support integration — all factors that will become clearer as the first transition phase unfolds.