Gudeta, Kumela (Phd)Chaka, Shibru2019-01-102023-11-182019-01-102023-11-182018-06http://etd.aau.edu.et/handle/12345678/15612The central focus of this paper is on exploring contents of the policy and respective legal provisions in relation to squatter settlement management, implementation gaps and challenges to implement the legal frameworks as well as assessed effects of the situations of squatting on development of Sebeta city. The coverage of squatters’ houses in the city is more than 51.16 percent of total residential houses in the city. The total population size of the city is estimated to 179,897. Mixed paradigm has been used with pragmatism world view. Four kebeles of the city administration were selected purposely based on location factors like land value differences with 384 sample informal settlers and open-ended questions were dominantly used not to limit ideas of the respondents. The prominent factors contributing for proliferation of informal settlements in Sebeta city are lack of clear urban land policies that could guide on how to manage squatting; unfair amount of displacement compensation (69.56 birr/m2 versus 1,250birr/m2 in informal market); and inability of the city government to provide title-deeds for old possessions and squatters in accordance with the law. In contrary to the findings of many studies conducted on similar areas, squatters in sebeta city are involved in squatting because of lack of access to formal land rather than economic poverty and other reasons. Majority of the informal settlements in sebeta city have almost equal access with formal settlements to basic infrastructures and services including roads, potable water, electricity, and shopping services. High proportions of the informal settlers in the city have occupied urban lands suitable for residence and can be used for any development purposes. Effects of the settlements are huge capital requirement for provision of infrastructures and services; government revenue reduction; violation of urban plans; uneconomical use of urban land and critical flooding which cumulatively hamper development of the city. The city government responses mainly focus on demolition. Since causes of squatting are variable as factors from government side and squatters themselves, demolition cannot be the best response. It adversely affects national economy, social development, and human right which finally may result in political instability.enThesis