Can a Sprawling Refugee Camp Morph Into a City?

In the remote lands of northwest Kenya, a refugee camp that sits eight hours away from the nearest city is on a journey to become a city itself. The first tents went up in Kakuma in 1992 as the "Lost Boys of Sudan" arrived; refugees from places like Ethiopia and Congo subsequently poured in. There are currently 300,000 refugees living there, and the Kenyan government and humanitarian agencies want to see the camp morph into a city whose people are sustained by their own incomes, not aid. As an initial step, the AP reports Kakuma has been re-designated a municipality, and will eventually switch from UN management to local government hands.

That income element is the tricky part. Kakuma sits in a water-starved area, so keeping livestock and farming aren't options. That means running a business is the only path many refugees see as viable, but many lack the necessary documentation and collateral needed to secure a bank loan, whose interest rates typically sits at 20%. The AP shares some success stories via Inkomoko, a charity that offers loans at much lower interest rates. Adele Mubalama, who fled Congo in 2018, took a sewing course in the camp via a Danish charity, and started making fabric masks during the pandemic. It morphed into a business that made her a profit of $8,300 in 2024—a vast sum compared to the roughly $10 a month that most refugees live on.

Inkomoko's Julienne Oyler says the talent is there: "We find that refugee business owners actually have the characteristics that make world-class entrepreneurs. They are resilient. They are resourceful. They have access to networks. They have adaptability. In some ways, what refugees unfortunately have had to go through actually makes a really good business owner." Indeed, other refugee entrepreneurs have helped bring WiFi, electricity, and healthcare to Kakuma. But others are skeptical about the prospects of it becoming a bona fide city, citing the lack of water, infrastructure, and two-way trade. (This content was created with the help of AI. Read our AI policy.)