This study sought to examine the displacement of households in the Lokichar-Kochodin basin due to the discovery and mining of oil in Turkana County. Guided by Anthony Giddens’ “Structuration Theory” in exploring the social processes associated with oil-induced displacement, a cross-sectional survey research design was adopted. A mixed method approach was further employed to collect data using questionnaires, focus group discussion (FGD) guides, and key informant interview (KII) guides. Both quantitative and qualitative analysis was performed through Statistical Package for Social Sciences (SPSS) Version 21 and Nvivo, respectively. The study found that the displaced households experienced loss of land for cultivation, and grazing, loss of social infrastructure, loss of residences, and overall loss of their livelihoods. The study concludes that oil-induced displacement, as a category or cause of development-induced displacement, is associated with adverse environmental, human-social, economic, and physical livelihood vulnerabilities for the affected populations. Therefore it is recommended that the government of Kenya should contemplate passing a law that necessitates compensation for affected victims in the line of development.