The Chiefs were scheduled to have eight selections in the upcoming draft prior to the NFL's announcement of compensatory picks, and that number has not changed.
The league announced that 15 teams - of which the Chiefs were not one of - would receive a total of 32 compensatory selections. The picks are calculated based on the impact free agents who leave a given team have with their new club the following season, as well as the impact of the free agents that you sign to you own team. The Chiefs had no major free agents move on during the 2011 offseason, and accordingly were not rewarded with a compensatory pick.
In all likelihood, the Chiefs will be in line for a compensatory pick next offseason because of Brandon Carr signing a lucrative contract with Dallas this offseason.
Compensatory picks are slotted at the ends of rounds, beginning in round three, and cannot be traded.