The refugee agency has asked Kenyans to chip in and help cover the Sh150 million deficit required to run the Dadaab Refugee Camp.
Speaking to journalists in Nairobi, Yvonne Ndege, the United Nations High Commissioner for Refugees (UNHCR) Kenya spokesperson, said funds from donor countries have dwindled.
According to Ms Ndege, the fundraised money to cover the deficit will help the agency run the camp for six months.
She attributed the cash crunch to the increased crises worldwide and displacement of people, especially in Syria and the Mediterranean Sea.
Ms Ndege spoke during the launch of a new campaign called LuQuLuQu - a home-grown solution to Africa's refugee crisis.
She said when refugees from these regions move to other countries, the funds that would have come to Africa are instead redirected to them.
"Earmarked funding for Africa and displaced communities from traditional donor countries like the United States and the European Union has seen a steady decline and continues to drop. This negative shift in funding is having a terrible effect on refugees across the continent. The negative shift calls for new home-grown ideas for refugees, internally displaced persons and asylum seekers on our doorstep," Ms Ndege said during the event.
The fundraising campaign dubbed 'LuQuLuQu' will run in Cote d'Ivoire, Ghana, Kenya, Nigeria, Senegal and South Africa.
Africa has more than 20 million displaced people, almost half a million of whom call Kenya home.
Those willing to contribute towards the cause can donate online through donate.unhcr/luquluqu or via M-Pesa paybill number 329 278.