Abstract

Multilateral Development Finance Institutions (DFIs) apply variable Development-induced displacement and resettlement (DIDR) policies for project investment-finance extended to client countries. However, developing countries, in essence, finance their development or investment projects separately, thus the need for a DIDR policy that matches international safeguard standards. Kenya has recently enacted far-reaching improvements in its DIDR framework informed by a long history of controversies surrounding DIDR and the colonial displacement and resettlement praxis. This paper traces the development of DIDR framework in Kenya and then develops a matrix to compare the framework with international safeguards extracted from the standards of six selected multilateral DFIs. It then analyses the gaps and prescribes measures to bridge the gaps towards the international standards. The major gaps noted are lack of solid income and livelihood restoration mechanisms and inadequate tracking, supervision and monitoring for DIDR. It has also presented a discussion on the need to fast-track attainment of the international standards, particularly in this period when Kenya is embarking on ‘Vision 2030’ development blueprint which hopes to spur Kenya to “High-Income Country” status by the year 2030. Multilateral DFIs are also piloting new Environmental and Social Frameworks (ESF) with the objective of assisting individual countries scale-up their DIDR policy. They can start by supporting Kenya to bridge the gaps as well as building human and technological capacity. Policy aspects indicated in this paper will enhance DIDR outcomes for Kenya.

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