The European Union has agreed to provide Sh3.9 billion in humanitarian aid to help vulnerable populations in Kenya and Uganda.
The fund will be used to help displaced people, such as refugees, living in both countries.
"These two countries are among the continent's largest hosts of refugees, with millions of people urgently needing assistance.
"Our new funding will help both those already displaced and the new arrivals into Kenya and Uganda," Christos Stylianides, EU commissioner for humanitarian aid and crisis management said.
He noted that the EU stands in solidarity with the two East African countries and is committed to supporting the refugees.
Sh2.8 billion of this funding will go to Uganda, which is the largest refugee-hosting country in Africa. The aid will prioritise emergency situations and new arrivals among the displaced populations, especially the many refugees arriving from South Sudan and the ever-increasing flood of Congolese refugees.
The fund will further provide emergency health and food assistance, water and sanitation, as well as protection and education in emergencies through accelerated learning programmes for children whose education has been disrupted by conflict and displacement.
Kenya will get the remaining Sh1.1billion, which comes on top of an earlier aid of Sh1.7billion, released in May to assist the victims of flooding that wreaked havoc in the country.
This will go to the support of refugees living in both Dadaab and Kakuma Camps, providing protection to the most vulnerable, as well as affording them an access to quality primary education.
Currently, Kenya is hosting more than 450,000 refugees, many who come from Somalia and South Sudan.
Additionally, the recurrent, prolonged climate shocks cause food and nutrition crises in the country, with the amount of humanitarian assistance offered to the country by the EU since 2012 amounting to over Sh15billion.
And with nearly 1.5 million refugees, Uganda is the largest refugee recipient country in Africa.
However, Uganda's liberal refugee policy is under increasing pressure due to their large number in the country and hence an overstretch on the available resources.