The question of the impact of refugees on host nations has lingered in research circles for a long time. Global researches indicate that refugees have negative and positive impacts they pose to the socioeconomic development of hosting nations. However, to appreciate the impacts of refugees on host socioeconomic development require an understanding on the challenges refugees face in contributing to the development of host states. Thus, this study’s objective was to investigate the challenges faced by refugees in Dadaab camps in contributing to the socio-economic development of Kenya. The study was founded on the refugee aid and development theory and used mixed methods design to collect data from refugees, host communities, government officials, NGO officers and security officers dealing with the social and economic factors associated with refugees. Multistage and census sampling were used to select respondents. Findings show that refugees face social and economic challenges that affect their contribution to the development of host nations and concludes that refugees’ socioeconomic development of host countries is hampered by social and economic challenges. The study recommends the instituting and implementation of policies that promote the protection of refugees to allow them effectively to contribute to socioeconomic development of Kenya. Key words: Socioeconomic development challenges, Somali refugees, Dadaab refugee camp