Assessing effects of targeted capacity-building and inclusive financing on livelihoods in Kakuma, Kenya

This research investigates the impact of Inkomoko’s capacity-building and inclusive financing interventions on refugee-owned micro, small and medium sized enterprises (MSMEs) in Kakuma, Kenya. Motivated by the inadequacies of traditional aid in addressing the growing refugee crisis and economic instability, the study explores how targeted support can drive sustainable livelihoods through private sector solutions. Despite their entrepreneurial potential, refugees face significant barriers, such as limited access to financial resources and
local markets. 

This study examines how Inkomoko’s initiatives—encompassing business training, financial management support, and direct inclusive finance—affect business revenue, job creation, and household expenses, with a focus on variations across age groups and genders. Utilizing a mixed-methods approach, pre-post evaluation design, the research analyzes both quantitative data (including revenue growth and job creation metrics) and qualitative insights (focusing on financial barriers and impacts). Findings reveal that while revenue increased significantly, the effects on job growth and variations across demographic groups were less pronounced. The study highlights the need for more nuanced support tailored to specific entrepreneurial challenges faced by refugees, including gender disparities and financial access issues. These insights contribute to refining policies and programs that bridge humanitarian aid with private sector opportunities, fostering economic integration and self-reliance among refugee communities.

Other Reports

Other Research Symposium Papers


Re:BUiLD Year 3 Annual Report


The International Rescue Committee’s (IRC) Refugees in East Africa: Boosting Urban Innovations for Livelihoods Development (Re:BUiLD) program is pleased to release the Year 3 Annual Report. As we focus on the fourth year of our implementation, we would like to share the progress we have made as well as learnings, and adaptations from the year ending December 31, 2023. Launched by the IRC and the IKEA Foundation in 2021, Re:BUiLD is one of the largest private investments (€30 Million) for urban refugee livelihoods in East Africa. The program targets to reach 20,000 refugees and host residents in Kampala and Nairobi.

Going by the principles of the Re:BUiLD approach that is largely anchored on flexibility and adaptive program design, we are known for continuous experimentation and learning. In September 2023 we paused to reflect on what was working and reconsidered some interventions. Key adaptations were drawn from progress indicators to inform our focus going into the future, thanks to the long-term investment from the IKEA Foundation that has powered our adaptive nature.

In this report, we highlight the significant milestones, key moments and the program changes that are born out of our client responsiveness strategy and continuous monitoring of the delivery of our interventions across our three pillars. These will build our year 4 efforts to document, amplify client voices, change stories and more importantly share learnings and evidence throughout our spheres of influence at local, national, regional and globally.


How Donors Can Better Support Urban Refugees in Kampala and Nairobi


Urban areas in low- and middle-income countries have become home for the majority of the world's refugee population, challenging the conventional narrative of refugee assistance that has traditionally focused on camps and settlements. UNHCR estimates that more than half world displaced persons live in urban areas. The bustling cities of Kampala, Uganda, and Nairobi, Kenya, stand as critical hubs for refugees and asylum seekers, presenting complex opportunities and challenges that starkly contrast with the lives of those in more controlled environments. This paper ,born from a collaborative effort between the International Rescue Committee (IRC) and the Center for Global Development (CGD), delves into the nuanced realities of urban refugees in these cities, debunking the myth of inherent self-reliance attributed to this group. By casting a spotlight on the specific needs of urban refugees and examining the extent of support provided by key bilateral donors and multilateral development banks (MDBs), this paper aims to reshape the narrative and approach to refugee assistance in urban settings.

The need for targeted donor support for urban refugees in Kampala and Nairobi has never been more critical. Amidst the backdrop of a growing global refugee crisis and the need for sustainable refugee management policy away from traditional encampment, this paper  sheds light on the overlooked struggles of refugees who seek solace in the urban sprawl, away from traditional refugee camps and settlements.  

Drawing on the insights from Re:BUiLD’s innovative program aimed at fostering self-reliance among urban refugees, as well as comprehensive analysis and stakeholder interviews, this paper offers strategic recommendations for donors. These recommendations are not only crucial for enhancing the support system for refugees in Kampala and Nairobi but also hold significant implications for urban refugee populations across all low- and middle-income countries. Through this detailed exploration, the paper seeks to inform and inspire a more inclusive, effective, and nuanced approach to donor engagement in the urban refugee crisis.

We invite you to view the summary of the report through this link. By exploring the innovative program, in-depth analysis, and stakeholder insights, the report aims to inform and inspire a more inclusive, effective, and nuanced approach to donor engagement in the urban refugee crisis.


Designing a Randomized Controlled Trial on Livelihoods for Refugees and Hosts: The Case of Re:BUiLD in Kampala


Few refugee livelihood initiatives are subjected to thorough evaluation. Findings from other populations can be instructive, but the impact may vary greatly for refugees. In collaboration with our partner, the Center for Global Development (CGD) and Principal Investigators, we conducted a randomized controlled trial on livelihoods in Kampala, Uganda. Firstly, we examine comprehensive data on wage and self-employment interventions in low- and middle-income nations. Based on this review and feedback from various stakeholders, we chose to test cash awards and diverse networking initiatives with a sample of approximately 100 individuals, as outlined in the paper. This text elaborates on the pilot design and the insights gained, leading to the decision to scale the study to involve 2,600 participants.

In conclusion, we showcase the research design and intervention that emerged from cash grants and groups with a mentor and three mentees that vary by nationality, gender, and group-level incentives. We hope that sharing our process and evidence base will be helpful for practitioners and researchers leading similar projects. Preliminary results from the randomized trial are expected in May 2024.

This paper was first published on the Center for Global Development (CGD) website.

The authors would like to thank Clare Clingain, Priscilla Dembetembe, David Musiime, Brian Ssebunya and an anonymous reviewer for their comments. We appreciate the hard work of the IRC staff to develop the project and implement the pilot, especially Shela Kabasele, David Musiime, Doris Nassuuna, and Barri Shorey. The authors are grateful to the IKEA Foundation for their role as a partner and funder of Re:BUiLD Program.