A recent study by Canada’s International Development Research Center (IDRC) has found that the county government of Nairobi loses at least Sh7 billion annually to cartels operating in informal settlements.
The research, titled "Unlocking the Poverty Penalty and Up-scaling the Respect for Rights in Informal Settlements in Kenya", was conducted between 2015 and 2016 by Akiba Mashinani Trust (AMT), the University of Nairobi, Strathmore University, and Katiba Institute. It reveals that cartels control the economy of most informal settlements in Nairobi, providing basic services such as food and housing at inflated prices.
According to the study, residents of informal settlements like Mukuru, which has a population of 492,000, pay exorbitant rates for essential services. For example, a family in a slum pays 172% more for water compared to a family living in a formal estate.
Response from County Government ¶
Nairobi Governor Evans Kidero stated that his government is working to declare informal settlements as Special Planning Areas, and the study’s findings will inform the county’s policy interventions.
The study also notes that at least two million Nairobi residents live in informal settlements, which continue to grow at a rapid rate. The researchers found that cartels in these areas generate significant revenue, estimated to be around Sh7 billion annually.
The recovered account cited reporting by Nairobi News.
