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When Aid Falls Short: The Ripple Effects of Funding Cuts on Refugee Livelihoods

a man holds up a sign that says " no to shirika plan "
a young man in a blue shirt is looking at the camera .
Ramazani Mwemedi

Have you ever wondered what happens when the support you depend on slowly disappears? In some communities, there’s a quiet tension as essential lifelines begin to fade, leaving people to face uncertainty and forge new paths in the shadows of change.

Background of the Refugees Community

Credit: Aljazeera

According to UNHCR’s Refugee Statistics, over 122.6 million people worldwide have been forced to flee their homes due to conflict, persecution, and disasters. Nearly 37.9 million are refugees, most of them live in Africa, a region that has seen continuous displacement over recent decades. In Kenya, refugee camps such as Kakuma and Dadaab have become critical havens, with Kakuma alone hosting more than 288,206 displaced people from countries including South Sudan, Somalia, and Ethiopia.

Many refugees in these camps have endured protracted displacement for over a decade, often facing challenges that extend well beyond the initial crisis. Access to education, healthcare, and sustainable livelihoods remains limited, which has spurred a growing need for innovative solutions that empower these resilient communities to rebuild their lives beyond the realm of emergency relief.

This data underscores the urgency for initiatives that not only provide immediate relief but also create long-term opportunities for self-reliance and economic stability.

Refugee Employment in Camps Like Kakuma and Other Camps in Kenya

Employment opportunities for refugees in Kenya remain highly restricted due to strict encampment policies that limit their ability to work formally and move freely. According to a 2024 report by the World Food Program (WFP) and the Refugee Studies Centre at the University of Oxford, only 40% of refugee households in Kakuma and Kalobeyei have at least one adult earning an income​.

Even among those who are employed, the job market is limited, and earnings remain significantly low. Most refugees who find work do so in incentive-based roles with NGOs and humanitarian organizations, earning an average of KES 5,827 ($49) per month—well below Kenya’s minimum wage​. Additionally, many refugees engage in informal self-employment, such as small-scale trading, food vending, or manual labor. However, these businesses often struggle due to market restrictions, lack of capital, and competition for scarce resources.

Despite efforts to promote self-reliance, employment remains one of the greatest challenges for refugees in Kenya. The lack of sustainable job opportunities, combined with strict work authorization requirements, means that many remain financially dependent on humanitarian aid, deepening economic hardship and limiting their ability to build independent livelihoods.

The urgent need for alternative income-generating opportunities—such as freelancing and remote digital work—has never been more critical in addressing the growing employment crisis in refugee camps.

The Cost of Living and Earning in Refugee Camps

For many refugees in camps like Kakuma, the struggle to meet everyday needs is compounded by an environment where incomes are extremely low and prices are constantly on the rise. According to the "Refugee Debt and Livelihoods in Northern Kenya" report (June 2024) by the Refugee Studies Centre—with support from the WFP—refugees receive a mix of in-kind aid and cash transfers designed to cover around 80% of their basic needs. However, recent funding cuts have led to significant reductions in these cash transfers.

This precarious situation is further exacerbated by the low earning potential of refugees. Many work in incentive-based roles, earning on average around KES 5,827 ($49) per month—hardly enough to buffer against the high cost of living. When refugees resort to buying on credit, they often face prices that are up to 16% higher than cash prices, effectively trapping them in a cycle of debt and further reducing their limited purchasing power.

These economic challenges highlight how even small shifts in funding or market conditions can have ripple effects on the well-being of refugee households. With dwindling support and rising everyday costs, the pressure on refugees to find alternative income sources—such as freelancing—is becoming more urgent than ever.

How Refugees Have Been Living in Kakuma for the Past Decade

Credit: UNHCR

Kakuma Refugee Camp, originally designed for temporary shelter, has become a long-term home for hundreds of thousands of refugees. Over the past decade, residents have faced harsh conditions—overcrowded, poorly built shelters, limited access to water, sanitation, and electricity, and an infrastructure that has not kept pace with population growth. Many have come to rely on humanitarian aid while grappling with scarce economic opportunities, leaving them in a cycle of dependency. These challenges are well documented by UNHCR data, insights from the World Bank, and reports from D+C and Ballard Brief.

How Funding Cuts Are Affecting the Refugee Community

Recent funding cuts from major donors such as USAID and UKAID have had a profound impact on the lives of refugees in Kenya. With these budget reductions, vital humanitarian programs—ranging from food distribution and healthcare to education and shelter improvement—are being scaled back. For many refugees, this means fewer resources to cover basic needs, increased food insecurity, and a decline in essential services. Reduced funding has forced aid agencies to trim monthly rations and delay critical infrastructure repairs, further straining an already fragile support system. These cuts compound the hardships of those living in camps like Kakuma, leaving them even more vulnerable as they navigate the long-term challenges of displacement.

How Other Organizations Are Tackling Poverty in Kenyan Refugee Camps

A diverse network of international NGOs, local groups, and Refugee-Led Organizations (RLOs) is actively working to break the cycle of poverty in Kenya’s refugee camps. For instance, the German Agency for International Cooperation (GIZ) plays a key role in supporting economic integration initiatives by offering vocational training, business development services, and capacity-building programs that empower refugees to generate income and build sustainable livelihoods.

In addition, organizations like HIAS promote social and economic inclusion by providing financial literacy programs and facilitating access to microcredit. A standout example among RLOs is Solidarity Initiatives for Refugees (SIR Africa), which works directly with refugee communities to foster grassroots economic projects, advocate for their rights, and create a network of peer support that helps build self-reliance from within.

Together, these initiatives—supported by international agencies like GIZ and bolstered by homegrown efforts such as SIR Africa—illustrate a powerful, collaborative response to poverty in Kenyan refugee camps. Despite persistent challenges, these organizations are paving the way for refugees to participate more fully in the economy and ultimately secure a more stable future.

How Opengates Is Tackling the Problem

Opengates is harnessing the power of digital technology to create real economic opportunities for refugees. By connecting refugee talent with remote freelancing work, Opengates is providing a pathway out of the cycle of poverty that has long defined life in camps like Kakuma. The platform offers refugees access to training, personalized onboarding, and advanced tools—such as AI-powered resume reviews—that help them build marketable profiles and secure remote projects from global clients.

In addition to digital job opportunities, Opengates is forging partnerships with key stakeholders to promote financial literacy and support entrepreneurial initiatives. This approach not only enhances the refugees’ skills but also empowers them to break free from their dependency on humanitarian aid, fostering greater self-reliance.

By creating an ecosystem that links refugees with meaningful, income-generating work, Opengates is tackling the root causes of poverty in refugee camps and paving the way for long-term economic stability.

Call to Action

At Opengates, we’re redefining economic empowerment for refugees through innovative digital solutions. We invite potential partners, investors, and clients to join us in transforming how refugee talent connects with global opportunities. Reach out today to explore how our platform can drive sustainable growth and create real impact, while building a more inclusive digital economy. Together, we can turn challenges into opportunities and set new benchmarks in social innovation.

Credit: SIR

References

Bruni, V., Muthui, P. M., Rodgers, C., & Sterck, O. (2024). Refugee debt and livelihoods in northern Kenya Report, . World Food Programme; Refugee Studies Centre, University of Oxford.

United Nations High Commissioner for Refugees. (2023). Operational Data Portal: Kenya. Retrieved from https://data.unhcr.org/en/country/ken/796

World Bank. (2021, April 12). After three decades, how are refugees in Kenya’s Kakuma refugee camp faring? World Bank Blogs. Retrieved from https://blogs.worldbank.org/en/africacan/after-three-decades-how-are-refugees-kenyas-kakuma-refugee-camp-faring

D+C – Development and Cooperation. (2020, December 18). Kakuma camp has become a permanent settlement. Retrieved from https://www.dandc.eu/en/article/living-conditions-kenyas-kakuma-refugee-camp-are-harsh-and-dangerous

Ballard Brief. (2020, August 10). Protracted refugee situations in Kenyan refugee camps. Retrieved from https://ballardbrief.byu.edu/issue-briefs/protracted-refugee-situations-in-kenyan-refugee-camps

Refugees International. (2024, June 3). The new Refugee Act in Kenya and what it means for refugees. Retrieved from https://www.refugeesinternational.org/perspectives-and-commentaries/the-new-refugee-act-in-kenya-and-what-it-means-for-refugees/

GIZ. (n.d.). Germany’s Agency for International Cooperation. Retrieved from https://www.giz.de/

Solidarity Initiatives for Refugees (SIR Africa). (n.d.). Solidarity Initiatives for Refugees. Retrieved from https://sirafrica.org/

HIAS. (n.d.). HIAS. Retrieved from https://www.hias.org/