Nepal’s Cabinet has approved a relief and rehabilitation package for families displaced during the government-led removal of vulnerable settlements along riverbanks in the Kathmandu Valley, offering a measure of financial security to some of the capital’s most at-risk communities.
For years, informal settlements have grown along the banks of rivers running through the Kathmandu Valley, particularly the Bagmati, Bishnumati, and Manohara, housing tens of thousands of low-income families. These settlements sit on flood-prone land, leaving residents exposed to seasonal flooding, waterborne disease, and landslide risk. Successive governments have attempted to clear these areas as part of broader urban planning and river restoration efforts, but such drives have frequently stalled amid concerns over the lack of adequate resettlement support for those displaced.
At a Cabinet meeting held at Singha Durbar on Tuesday, the government approved a one-time lump-sum rehabilitation grant of Rs 25,000 per affected family. Families of up to five members will additionally receive Rs 15,000 (about 97 USD) per month for three months to cover temporary accommodation, with an extra Rs 2,000 per month for each member beyond five. Elderly people, persons with disabilities, and others unable to care for themselves will be placed in designated holding centres, and the government has committed to ensuring continuity of education and healthcare for affected children through coordination with local governments. Government spokesperson and Minister for Education and Sports Sasmit Pokharel announced the decisions after the meeting.
The package addresses a recurring criticism of riverbank clearance drives in Nepal, that families are removed without adequate support, often left without shelter or viable alternatives. By combining a one-time cash grant with three months of rental assistance, the government is acknowledging that displacement carries a human cost that must be offset. The inclusion of protections for elderly and disabled individuals, and an explicit commitment to children’s welfare, reflects a more comprehensive approach than previous operations have offered. That said, Rs 25,000, roughly 185 USD, and Rs 15,000 per month in rental support may fall short in a city where affordable housing is increasingly scarce. The effectiveness of the package will depend heavily on how quickly funds reach displaced families and whether local governments have the capacity to deliver services on the ground.
The Kathmandu Valley’s riverbank settlements are a product of decades of rapid, unplanned urbanisation. Nepal’s capital has grown from a city of around 400,000 in the 1980s to a metropolitan population of several million today, drawing migrants from across the country seeking work and opportunity. Many who cannot afford formal housing have settled on marginal land along rivers, land that is both flood-prone and, under Nepali law, public property. River restoration has become a priority for successive Kathmandu administrations, both for environmental reasons and as part of urban renewal initiatives, with the Bagmati River cleanup drawing government backing and international support. Tuesday’s Cabinet decision represents a step toward ensuring that the people most affected by these urban transformation efforts are not left entirely without a safety net.