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Kigali city authorities have recently adopted an in-kind compensation option to mitigate some patterns of spatial injustices, reflected in the displacement of expropriated real property owners towards urban outskirts, where they can afford new properties using the in-cash compensation they receive. This study assesses whether this form of compensation promotes a spatially just and inclusive urban (re)development. It applies an evaluative framework comprising a series of indicators connected to three dimensions (rules, processes, and outcomes) of spatial justice and its four forms consisting of procedural, recognitional, redistributive, and intra-generational justice. It relies on data collected through field surveys and a review of literature on expropriation and urban (re)development processes in Kigali city. The findings reveal that the adopted in-kind compensation exhibits some aspects of spatial justice connected with the access to decent houses, basic urban amenities, and increased tenure security. However, these findings unveil deficiencies in procedural, recognitional, redistributive, and intra-generational justice, portrayed in the lack of negotiation on the compensation option, non-participation of expropriated property owners in their resettlement process, overcrowding conditions of the new houses, and loss of the main sources of incomes. Some options for a better implementation of the in-kind compensation are suggested. Two strands of procedural and recognitional justice, namely negotiation and community participation, are central to their successful implementation.