Kenya: Supporting refugees and host communities with private sector involvement

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The aim of the project is to contribute to the economic integration and independence of refugees and host communities in Kakuma and Kalobeyei in Kenya. Specifically, market-oriented solutions are to be improved to strengthen local markets and overcome key obstacles to development. For this purpose, the Kakuma Kalobeyei Challenge Fund (KKCF) is being set up. The KKCF supports measures in three different components. In the first component, private and social enterprises are supported in entering the target market in Kakuma Kalobeyei and in expanding their ongoing business activities by providing investment grants. The policy and public relations work of the second component creates an improved economic environment that is attractive to private companies and allows local entrepreneurs to start business activities. The third component supports larger companies (so-called corporates) that do not require a grant for investments in Kakuma Kalobeyei in entering the market (in particular by financing studies, scoping missions, providing technical support, training, lobbying). The recipient and project sponsor of the measure is the International Finance Corporation (IFC) of the World Bank. The measures under the first component are being implemented by the African Enterprise Challenge Fund (AECF). The total cost of the project is around USD 26.83 million. The financial contribution of the BMZ special initiative on flight is EUR 5.24 million (tranche 1) and a further EUR 3.00 million (tranche 2). Other donors are currently Switzerland, the Netherlands, the EU and DFID. The project runs from the beginning of 2020 to the end of 2024.