Articles

The Shirika Plan: Navigating Property Acquisition in Integrated Settlements

Kenya’s Shirika Plan, 2025 represents a transformative shift in the country’s approach to refugee management by transitioning the sprawling refugee camps of Dadaab and Kakuma into integrated settlements. These settlements, located in Garissa and Turkana counties respectively, aim to foster socioeconomic inclusion for over 800,000 refugees and host communities through enhanced access to jobs, education, healthcare, and infrastructure. As these areas evolve from encampments into municipalities, opportunities for property acquisition are emerging, accompanied by complex legal implications. This article explores the legal framework governing property purchases in these regions, the challenges posed by the Shirika Plan’s implementation, and the broader implications for investors, refugees, and host communities.

The Shirika Plan, meaning “coming together” in Swahili, is a multi-year initiative aligned with Kenya’s Vision 2030, the Global Compact on Refugees (GCR), and the Refugee Act of 2021. It seeks to transform Dadaab and Kakuma from isolated refugee camps into vibrant urban settlements that integrate refugees with host communities. As of February 2025, Dadaab hosts 423,674 refugees, and Kakuma hosts 302,372, with significant populations from Somalia and South Sudan. The plan, set to run through 2036 with an estimated initial cost of $943 million, prioritizes:

  • Socioeconomic Inclusion: Granting refugees access to work, business opportunities, and property ownership.

  • Infrastructure Development: Upgrading roads, water systems, and other urban amenities.

  • Policy Reforms: Implementing the Refugee Act 2021 to facilitate freedom of movement and economic participation.

  • Environmental Sustainability: Addressing issues like deforestation and water scarcity.

The transition to municipal status for Dadaab and Kakuma introduces new opportunities for property investment but also raises legal complexities due to the unique socio-political and economic context of these regions.

Legal Framework Governing Property Ownership

1. The Constitution of Kenya and Land Laws

The Constitution of Kenya (2010) provides the foundation for land ownership, categorizing land as public, community, or private (Article 61). In Dadaab and Kakuma, most land is classified as community land, managed by local communities under the Community Land Act of 2016. This classification poses significant challenges for property acquisition:

  • Community Land Rights: Community land in Turkana and Garissa is held in trust by county governments for pastoralist communities, who rely on it for grazing. The Shirika Plan’s expansion of settlements may require additional land, potentially conflicting with these customary rights. Investors must navigate negotiations with community leaders and county authorities, as seen in the establishment of the Kalobeyei settlement, where land was allocated after consultations with Turkana’s host community.

  • Consent and Compensation: The Land Act of 2012 mandates free, prior, and informed consent for any land transfer affecting community land. Acquiring property in these areas requires transparent agreements to avoid disputes, particularly given historical tensions over land use between refugees and host communities.

2. Refugee Act of 2021

The Refugee Act of 2021 marks a shift from Kenya’s previous encampment policy, which restricted refugees’ rights to movement and property ownership. Key provisions relevant to property acquisition include:

  • Right to Own Property: The Act grants refugees the right to acquire property, but bureaucratic hurdles, such as obtaining refugee IDs and permits, remain significant barriers. For instance, while the law theoretically allows refugees to purchase land, practical access is limited by administrative delays and lack of clarity on documentation.

  • Freedom of Movement: The Act provides circumscribed freedom of movement, but refugees are still largely confined to Garissa and Turkana counties. This restriction limits their ability to invest in property outside these areas and affects the market dynamics for property in Dadaab and Kakuma.

3. Municipalization and Urban Planning

The gazettement of Dadaab and Kakuma as municipalities under the Shirika Plan introduces urban planning regulations that impact property acquisition:

  • Urban Development Standards: As municipalities, these areas must adhere to urban planning laws under the Physical and Land Use Planning Act of 2019. Property buyers must comply with zoning regulations, building codes, and infrastructure requirements, which are still being developed for these nascent municipalities.

  • Land Use Conflicts: The high population density in Kakuma (11,580 people per square kilometer) and water scarcity in Dadaab complicate land allocation for new developments. Investors face risks of disputes over land use, particularly if expansions encroach on pastoralist grazing areas.

Legal Implications for Property Purchasers

1. Land Tenure and Ownership Risks

Purchasing property in Dadaab and Kakuma involves navigating a complex land tenure system:

  • Unclear Title Deeds: Community land often lacks formalized title deeds, increasing the risk of disputes over ownership. Investors must conduct thorough due diligence, including verifying land records with county governments and engaging with community leaders to ensure legitimacy.

  • Double Registration Issues: Historical cases of Kenyan nationals registering as refugees to access aid have led to complications in land ownership records, particularly in Dadaab. A 2024 report highlighted risks of statelessness for some individuals due to double registration, which could affect the validity of property transactions involving such parties.

  • Land Conflicts: The Shirika Plan’s expansion may exacerbate tensions with host communities, particularly in Turkana, where pastoralists oppose further land allocation for refugee settlements. Legal disputes over land could delay or derail property investments.

2. Bureaucratic and Administrative Challenges

The transition to integrated settlements is hindered by administrative gaps:

  • Permit Requirements: While the Refugee Act allows refugees to own property, obtaining necessary permits (e.g., work or movement permits) remains cumbersome. Non-refugee investors may also face bureaucratic delays in securing approvals from the Department of Refugee Services (DRS) or county governments.

  • Lack of Clear Policy: The Shirika Plan lacks detailed regulations on how refugees can participate in urban development, such as acquiring property in the new municipalities. This ambiguity creates uncertainty for investors, as noted in a 2024 Refugees International report, which criticized the plan’s delayed publication and weak legal foundation.

3. Economic and Social Considerations

The socioeconomic context of Dadaab and Kakuma adds layers of complexity:

  • Economic Marginalization: Turkana and Garissa are among Kenya’s poorest counties, with poverty rates of 88% and 68%, respectively. Limited economic activity and infrastructure deficits may depress property values and investment returns, despite the Shirika Plan’s promise of economic growth.

  • Community Tensions: Opposition from host communities, as voiced by Turkana West MP Daniel Epuyo and local elders, highlights concerns over resource competition and inadequate consultation. Property buyers risk social backlash if investments are perceived to favor refugees over locals.

4. Environmental and Infrastructure Constraints

Environmental challenges in these arid regions impact property development:

  • Water Scarcity: Kakuma relies on six boreholes for water, providing only 17.4 liters per person daily, below international standards. Dadaab faces similar shortages, with frequent infrastructure damage. Property development must account for sustainable water management, increasing costs and legal compliance requirements.

  • Deforestation: Refugee reliance on firewood has caused significant environmental degradation, prompting the Shirika Plan to prioritize reforestation and alternative energy sources. Property buyers may face restrictions on land use to comply with these environmental goals.

Opportunities for Investors

Despite these challenges, the Shirika Plan creates opportunities for property investment:

  • Economic Growth Potential: Kakuma’s existing 2,500 businesses and $56 million consumption economy demonstrate a vibrant market. The plan’s focus on vocational training and microfinance could further stimulate economic activity, increasing demand for commercial and residential properties.

  • Infrastructure Investments: The planned $943 million for phase one includes funding for roads, schools, and health facilities, potentially increasing property values in well-planned areas.

  • Private Sector Engagement: The involvement of the World Bank, IFC, and EU-INTPA encourages private sector participation, offering investors opportunities to partner with development agencies on projects like the Kakuma Kalobeyei Challenge Fund (KKCF).

Recommendations for Prospective Buyers

To navigate the legal landscape, property buyers should:

  1. Conduct Due Diligence: Verify land ownership through county land registries and engage with community leaders to secure consent. Legal counsel familiar with community land laws is essential.

  2. Monitor Shirika Plan Implementation: Stay updated on the plan’s progress, particularly regarding refugee IDs, work permits, and municipal regulations, to anticipate changes in property market dynamics.

  3. Engage with Stakeholders: Collaborate with the DRS, UNHCR, and local governments to ensure compliance with integration policies and to mitigate community tensions.

  4. Prioritize Sustainability: Invest in eco-friendly infrastructure to align with the plan’s environmental goals and reduce long-term costs.

Conclusion

The Shirika Plan’s transformation of Dadaab and Kakuma into integrated settlements offers a unique opportunity for property investment in Kenya’s northern frontier. However, the legal implications are multifaceted, involving complex land tenure systems, bureaucratic hurdles, and socioeconomic challenges. While the Refugee Act of 2021 provides a framework for refugee inclusion, its implementation remains incomplete, creating uncertainties for investors. By understanding the legal landscape, engaging with stakeholders, and prioritizing sustainable development, property buyers can navigate these challenges and contribute to the region’s socioeconomic transformation. The success of the Shirika Plan will depend on robust coordination between national and county governments, development partners, and communities, ensuring that property investments benefit both refugees and host populations.

Contact us at +254 716 708 104 or info@lawguide.co.ke for expert advice.