Economic penalties for refugees running businesses in Nairobi - “I’d rather pay for the tea” – bribes and refugee livelihoods in Nairobi

In Nairobi, businesses owned by refugees are more affected by financial hardship than those owned by Kenyans. In particular, the culture of harassment, arbitrary arrest and extortion of people operating businesses in the city by inspecting officers and police affects refugees disproportionately.

Refugee businesses expect to pay bigger bribes and higher (informal) fees for release than Kenyans and purposefully reduce their own incomes to try to minimise harassment. There is a common perception that formalising refugee businesses through licencing can tackle the livelihood challenges faced by displaced people. However, evidence suggests that even licenced refugee businesses are penalised. This briefing provides insight into the challenges faced by refugees running businesses in Nairobi. It recommends not only that the business permit system be made more accessible and affordable, but also that more protective measures be introduced — such as educating the authorities on refugees’ rights in the city and having a much more nuanced discussion on informality.

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.