The announcement was made by a committee overseeing the implementation of the National Dialogue Committee (NADCO) report.
According to the committee, the funds are meant to support victims who lost property, businesses, or loved ones during the demonstrations that took place in different parts of the country.
The proposal forms part of the broader efforts by the government to address grievances raised during the national dialogue process.
Officials involved in the process said that a number of victims have already been identified through consultations and verification carried out by relevant authorities.
These individuals and families are expected to benefit from the compensation plan once the funds are approved and released.
The compensation proposal is included in the planned budget for the 2025/2026 financial year, which is currently under consideration by the National Assembly of Kenya.
Members of the committee explained that the allocation aims to promote healing and reconciliation among communities that were affected by the protests.
They noted that many people suffered serious losses during the demonstrations, including damage to homes, shops, and other forms of property.
In addition, some families lost relatives during the unrest, leaving them with emotional and financial burdens.
The committee said the compensation plan is meant to acknowledge those hardships and provide some form of support to the affected households.
The proposal is also seen as one of the practical steps being taken to implement recommendations made in the NADCO report.
The report emerged after months of dialogue between political leaders and stakeholders seeking ways to ease political tensions and strengthen democratic processes in the country.
Supporters of the plan say the compensation package demonstrates the government’s commitment to addressing the consequences of the protests and restoring public trust.
However, the committee emphasized that the funds will only be distributed after a careful verification process to ensure that only genuine victims benefit from the program.
Authorities will continue reviewing claims and confirming details before the compensation is finalized.
The Sh2 billion allocation is expected to be part of wider reforms and measures arising from the NADCO discussions, which aim to improve governance, encourage dialogue, and prevent similar conflicts in the future.