Expropriating farmland deprives rural small-holders of one of their most important income generating assets and forces them to find new livelihoods. Governments recognize this, and often provide households with compensation, which in some cases takes the form of a lump-sum payment. But are these lump-sum payments sufficient to compensate households for the land that is taken? A natural way to assess this is to determine whether a household’s permanent wealth has changed as a result of the intervention. The main purpose of this study is to assess of post expropriation livelihood of rural farmers in Koga irrigation project. Community based cross-sectional study design was used. A total of 210 households were included in the study. Data was collected from the study population using structured questionnaire face to face interview in local language by trained data collectors. The collected data was entered to SPSS version 20 for analysis. Binary logistic regression was used to assess the association between outcome and independent factors. A total of 210 study participants were included in the study with a mean age of 46.33 years (SD=±16.9 years). One hundred eighteen (56.2%) of the study participants were in the age group less than 46.33 years. Majority (85.7%) of household heads included in the study were male in sex. The multivariate analysis showed age, compensation paid; average monthly income and land owned in hectare were found to be the determinant factors for post expropriation livelihood status. The level of post expropriation livelihood status was very low compared to expectations and age, compensation paid; average monthly income and land owned in hectare were found to be the determinant factors for post expropriation livelihood status. Design a strategy that specifically helps older age groups withstand life after expropriation, pay compensation to those who were not paid at all, motivate households to see alternatives to raise their average monthly income and motivate those households who did not have land to get involved in any activitie