Housing the growing population in Kenya remains one of the greatest challenges of achieving the Millennium Development Goal 1. The recent proliferation of slums represents the insufficiency of resources and physical planning policies and regulations. Slum redevelopment strategies are often conceived as the solution to stop further growth of slums. Locally one such strategy is Kenya Slum Upgrading Programme (KENSUP) which was launched in 2004 piloted in the Kibera Soweto east Village. Guided by the need to ensure that development interventions place the people first in such strategies the study was therefore designed to answer the following questions: What are the social and economic effects of the Kenya Slum Upgrading Programme on the Kibera residents? How are the Kibera slum residents coping with the transformation as a result of the slum upgrading? Accordingly the overall objective of the study was to explore how the lives of the Kibera slum residents have been transformed following the slum upgrading programme. The specific objectives of the study were to investigate the socio-economic effects of the slum upgrading programme and to find out the coping strategies the Kibera slum residents have developed as a response to the slum upgrading programme.