Informal settlements are growing in the world everyday due to poverty and inadequate land to settle. Most informal settlements are faced with a myriad of problems ranging from inadequate infrastructure, poor sanitation, water and noise pollution among others. This study sort to determine the extent of disaster risk preparedness in the informal settlements of Nyeri town, Nyeri County. The specific objectives of the study were to assess the level of awareness on the types of disasters and existing policies to address them, to establish disaster mitigation measures in place, to identify the role of stakeholders in disaster management, to identify the challenges encountered during disaster risk reduction initiatives. The study targeted residents of informal settlements in Majengo Witemere Ngangarithi kwa Mwaura, Mathari “transformer”, and Ruring’u Muslim village. This research applied descriptive cross-sectional study design. A sample of 384 residents was selected among the residents. Data was collected by use of questionnaires and key informant interview guide. Data analysis was done using SPSS version 21. Univariate analysis for each variable was done so as to yield descriptive statistics that was used to analyze the variables. Presentation of the findings was done through prose, tables and figures. The results indicated that there was a significant association between the area of residence and the level of compliance of policy rules concerned with disaster risk reduction [X2 (3) = 11.446, p-value =0.010<0.05]. However, there was no significant association between the area of residence and level of awareness of the disasters that could affect them [X2 (3) = 2.99, p-value =0.393>0.05], and neither was there significant association between the area of residence and level of awareness of any policy rule concerned with disaster risk reduction [X2 (3) =7.026, p-value =0.071>0.05]. Key informants interview was administered to 10 key informants within Nyeri County, these included each Managers and supervisors of Ministry of Health Nyeri County, County Government of Nyeri department disaster Management, Nationals interior and coordination office Nyeri, Kenya Red Cross Society Nyeri office and County National Disaster Management Authority Nyeri office. It was concluded that Risk assessment as a step for successful disaster reduction measures will ensure that the community members are aware of the possible hazards. National and County government should incorporate the national and international guidelines in their policy. Lessons learnt from previous disasters that have affected other informal settlements and other parts of the country should inform the formulation of mitigation measures for disaster management. The researcher further recommends to the scholars to consider research on disaster risk preparedness as the strategy of counties development agenda and Social and economic potentials that the County Governments can tap in informal settlements.