Dam is a structure built across a river or other watercourse to control and regulate the flow of water, store water for various purposes, generate electricity or prevent flooding World Commission on Dams (2012). Most of dams built mainly are for irrigation and domestic use purpose. A case of Thiba Dam construction it was situated in Rukenya, Kirinyaga County. Its main reason for construction was to improve the irrigation activities in the area and make water available for domestic use. Dam construction is followed by several problems. A case of Thiba Dam construction it had affected positively and negatively the people in the area. A case of displacement had occurred which was involuntary since the dam was to be constructed on a large piece of land. Dams can have negative effects on the rivers where it changes the natural flow this can cause sedimentation, effects on fish population and loss of fertile soil. This study focused on how household were impacted on dam construction projects. The study was done in Rukenya ward, Gichugu Constituency, Kirinyaga County. The area was of interest because the dam was constructed on a 10,000 acre of land which means most people were affected from this region hence the area of interest. The main aim of this study was the focus on how the dam construction had affected the households in terms of displacement, social amenities and water availability. Simple random sampling was used by the researcher because it was one of the best strategies for producing results for the whole representative sample Mehrez (2018). The targeted population of this study was 600 but will only sample 180 PAPs. A questionnaire was used to acquire data from the sampled households. Descriptive research design was used. Frequency analysis, regression analysis and quantitative and qualitative data presentation techniques was used to analyze the data. The results was presented using SPSS version 21. The study will aid in the government's understanding of the effects of dam construction on nearby households, serve as a foundation for further research, and aid other implementers and sponsors in balancing the costs and benefits of dam development. The study found out that 50% of household were compensated with land. The findings also showed that only 20% of household were compensated in monetary for while only 30% of the household were relocated