Shirika Plan to turn refugee camps into thriving urban centres

Plans are underway to transform Kakuma and Dadaab refugee camps into integrated and self-sustaining urban centres through the financing by Kenya’s Shirika Plan.

Launched by the government in March 2025, the Shirika Plan is a policy shift from traditional humanitarian aid toward inclusive development, recognising refugees as active contributors to Kenya’s economy.

It aligns with Kenya Vision 2030, the Bottom-Up Economic Transformation Agenda and the Global Compact on Refugees, and is convened by CARE Denmark and CARE Kenya, with support from the Danish Royal Embassy in Nairobi.

A recent high-level forum brought together government representatives, private-sector actors, investors, development agencies, and social enterprises to explore new financing models that can transform humanitarian aid into long-term, investable resilience.

Speaking on behalf of the Commissioner for Refugee Affairs, Richie Olaka reiterated the government’s commitment to the Shirika Plan’s vision of integration and self-reliance.

“We are moving from viewing refugees through a humanitarian lens to embracing them as partners in development. Access to documentation, financial inclusion, and gender-responsive responses are critical to enabling refugees to participate meaningfully in Kenya’s economy,” he said.

CARE Denmark Chief Executive Officer Rasmus Stuhr Jakobsen emphasises the need to combine public, private and philanthropic capital to create lasting impact in fragile contexts amid global funding pressures and rising climate-related displacement.

“Humanitarian needs are rising while concessional aid is under pressure. The answer is not charity versus capital, it is smarter partnerships that crowd in investment and leave no one behind,” Jakobsen said.

"Kenya is setting a precedent for innovative financing in refugee-hosting regions. If we succeed here, Kenya can set a global example for how innovative finance delivers both social and financial returns, even in refugee-hosting areas.”

CARE Kenya Country Director Hellen Owiti called for a collective shift toward models that empower communities and attract private investment into refugee economies.

“Communities in Turkana and Garissa are already innovating, from green livelihoods to small enterprises. What they need now is access to finance, markets, and enabling policy. The Shirika Plan provides the framework, and partnerships like this provide the momentum,” she said.

Private sector and investor representatives echoed that Kenya’s refugee-hosting regions are evolving from aid-dependent areas into emerging frontier markets ready for catalytic investment.

Teresiah Wakahia, Director of Business Growth Services at Inkomoko, highlighted that refugee and host entrepreneurs in Dadaab and Kakuma are already operating viable micro-enterprises but face barriers to accessing finance.

“Refugees are not just recipients of aid, but are resilient businesspeople with ideas worth investing in. The demand for finance is real, but documentation, other requirements and infrastructure gaps make them invisible to lenders. The market is there; what’s needed is capital to do business, not just aid,” she explains.

Inkomoko’s success demonstrates the potential: across East Africa, the organization has disbursed over USD 20 million in loans to 25,000 entrepreneurs, including USD 13 million in Kenya alone, proving that refugees and hosts are bankable when financial products and policies are inclusive.

Wakahia notes that Dadaab holds a larger credit portfolio, while Kakuma’s cosmopolitan economy continues to grow through cross-border trade, each requiring tailored financial instruments to unlock further growth.

Ryan Ombara of Open Capital Advisors, who led the technical session, underscored that humanitarian programs can leverage blended-finance instruments such as risk-sharing guarantees, results-based financing, revolving funds, carbon-linked subsidies, and development-impact bonds.

“These mechanisms, successfully applied elsewhere, could be adapted to Shirika Plan priorities, from off-grid energy and childcare to livelihoods and climate adaptation, turning policy intent into investable pipelines,” Ombara explains.

One example showcased was Okapi Green Energy Limited, a Kakuma-based social enterprise providing affordable solar power and clean-cooking solutions for both refugee and host households.

Okapi operates a 20 kW mini-grid serving over 200 clients and is seeking a USD 700,000 blended-finance package, 60 percent grant for consumer activation and 40 percent concessional loan for inventory, to scale its integrated clean-energy model.

The event also featured initiatives aimed at strengthening ecosystems for refugee-led and community enterprises through technical assistance, financing, and support.

CARE Denmark launched its Adaptation Revolving Fund, designed to bridge a critical financing gap in climate adaptation.

The fund aims to unlock the growth potential of local enterprises while delivering measurable social, environmental, and financial returns through two key streams, including a pipeline of high-impact enterprises and carbon finance initiatives.

All partners agreed to map investable business cases aligned to Shirika Plan priorities including energy, water, livelihoods, childcare or ECD and climate adaptation.

Also advance de-risking instruments which guarantees, results-based finance, concessional debt, and policy steps that enable refugee financial inclusion.

In the next 100 days, take concrete steps to identify new financing streams, forge new partnerships and advocate for more enabling environments for investing in refugee hosting areas, in Kakuma and Dadaab. 

By blending social impact with commerce, Kenya is demonstrating that refugee–host inclusion can be both sustainable and investable, paving the way for a future where humanitarian aid transforms into lasting, locally driven development.

Presentations were delivered by Sawa Nakagawa, Africa Director at AlphaMundi Foundation and Boniface Odhiambo from the International Rescue Committee, who unveiled their joint initiative, the Shared Pathways Fund.

Alistair Cowan from the Danish Refugee Council also shared insights into the organization’s efforts to catalyze private-sector development in refugee contexts.