Introduction
Cash Plus is a cash transfer modality that pairs unconditional cash transfers with productive inputs, assets and or technical training, aimed at supporting beneficiaries to address immediate needs while engaging in productive activities (FAO, 2023). Approximately 46 per cent of Kenyans live below the poverty line, with 19 per cent living in extreme poverty. Due to this, more than 1.5 million Kenyans are chronically food insecure, and rely on emergency relief to meet their basic needs.
Kenya has made some strides in reducing poverty levels through cash transfer programmes. However, the issues of poverty and food insecurity persist, causing the cash transfer programmes to be ineffective due to unsustainability. The country has the potential of transforming traditional cash transfer systems into innovative and comprehensive systems known as Cash Plus to achieve financial empowerment and social development. This transformative shift could not only emphasize the monetary support that individuals and communities require but also extend its reach to a holistic approach of the well-being of individuals and communities.
Cash Plus systems address the root causes of poverty by integrating education, healthcare, and livelihood support leading to long-term improvements in well-being. In addition, tailored solutions provided by Cash Plus initiatives recognize diverse beneficiary needs and promote resilience by equipping individuals with skills and resources for self-reliance. This transition is essential for fostering sustainable development, resilience, and empowerment among individuals and communities. This blog focusses on reengineering cash transfer to cash plus in Kenya.
Status of Cash Transfers and Complementary Programmes
The country has made progress in social protection efforts by implementing the National Social Protection Policy (NSPP) of 2011. This policy underscores the significance of strengthening social assistance through poverty reduction, social inclusion, promoting human capital development, enhancing household resilience and providing robust monitoring and evaluation mechanisms. This is prominently highlighted through the establishment of the National Safety Net Programme (NSNP). Serving as a cohesive framework, the NSNP adeptly coordinates and harmonizes diverse social protection programmes specifically designed for vulnerable groups.
There are programmes exclusively centred on cash transfers. The Cash Transfers to Orphans and Vulnerable Children (CT-OVC), which began in 2005, Older Persons Cash Transfer programme introduced in 2006 and People with Severe Disability Cash Transfer programmes in 2011. This signifies Kenya’s targeted endeavours to address the unique vulnerabilities of specific demographics. These initiatives play a pivotal role in furnishing essential financial support to their respective beneficiary groups.
In the year 2021/2022, a significant number of beneficiaries, including 278,188 orphans and vulnerable children, 756,485 older persons, and 37,553 with severe disabilities received funds, demonstrating a steadfast commitment to providing support and assistance to vulnerable segments of society. Nevertheless, persistent challenges arise as both CT-OVC and programmes targeting the elderly and individuals with disabilities lack a comprehensive approach, failing to integrate broader social services beyond direct cash transfers. This limitation creates deficiencies in crucial domains such as healthcare, transportation, and community-based support, making accurate identification and reaching all eligible beneficiaries challenging and posing a risk of excluding those in dire need.
Although cash plus programmes have not yet been implemented in the country, there are existing examples of cash transfer programme integrated into a cash plus programme. An example is the Hunger Safety Net Programme (HSNP) that was integrated into Oxfam GB’s initiatives in Turkana in 2007. Established as part of a broader Programme Realignment in 2007, Oxfam GB shifted its focus towards integrating humanitarian and development approaches in the region. This strategic shift aims to address the multifaceted challenges faced by communities in Turkana, particularly concerning food security and livelihood sustainability, which addresses chronic food insecurity in arid and semi-arid regions.
Oxfam GB programme went beyond traditional cash transfers. The programme integrates additional components to tackle the multifaceted aspects of poverty. These supplementary elements include livelihood support, nutritional interventions, and community-based support systems. HSNP operates in four counties such as Mandera, Marsabit, Turkana and Wajir and has effectively delivered regular cash transfers to extremely poor households. By being part of the programme, it recognizes its positive impact as not only alleviating immediate financial needs but also contributing to poverty reduction by addressing the broader challenges associated with chronic food insecurity in northern Kenya.
However, the programme’s implementation faces challenges. Administrative capacity constraints hinder efficient management and oversight. Accurate targeting proves difficult, leading to potential exclusion of eligible beneficiaries or inclusion of ineligible ones. Corruption risks pose threats to the programme’s integrity and effectiveness, potentially diverting funds away from intended recipients. Social factors such as cultural norms and community dynamics can complicate implementation and acceptance. Logistical hurdles, including transportation and distribution logistics, impede timely delivery of benefits. Budgetary sustainability concerns raise uncertainties about the programme’s long-term viability and impact. Addressing these challenges is crucial for programme success and effectiveness.
Issues in Getting to Cash Plus
Social protection policy context
Social protection is integral to the achievement of the Sustainable Development Goals (SDGs) adopted by the United Nations. Social protection is a linchpin in the Sustainable Development Goal (SDG) framework for eradicating poverty. While it does not explicitly endorse cash plus programmes, its focus is on integrated and multidimensional strategies, which align with the principles often associated with cash plus initiatives. At the heart of SDG Goal 1, social protection systems serve as a critical tool in shielding individuals from the adverse impacts of poverty and vulnerability.
Regionally, the Social Policy Framework for Africa 2005 developed by the African Union outlines key principles for social policy, including social protection, to address poverty, inequality, and social exclusion. The African Union has also emphasized the need for member states to develop and implement national social protection policies tailored to their specific contexts. Nationally, the Kenya Vision 2030 under social pillar recognizes the importance of implementing policies and programmes that safeguard vulnerable populations and contribute to poverty reduction. Social protection measures, including healthcare services, housing initiatives, and social security programmes, which are integral components of the Vision’s broader strategy to create a socially and economically resilient society.
The Kenyan government’s Bottom-up Economic Transformative Agenda places a strong emphasis on social protection as a cornerstone for poverty reduction. By prioritizing the needs of the most vulnerable and marginalized communities, the agenda seeks to implement targeted social protection programmes that provide a safety net and empower individuals economically. These initiatives aim to address the root causes of poverty, offering financial assistance, healthcare access, and educational opportunities to uplift communities. The country has made a vital milestone by introducing enhanced single registry (ESR) for social protection. This was introduced in 2020 and went live in July 2021. The aim of ESR is to deliver transformative social protection services.
Research conducted by the UNICEF Office of Research Innocenti, along with national and international research partners, governments and UNICEF country offices, shows that integrating cash transfers with other components such as health insurance, livelihood training, or links to sexual and reproductive health services can generate additional benefits for individuals and their households. This outcome strengthens the importance of cash plus programme. Tanzania has established a cash plus programme called Ujana Salama cash plus. The programme targets adolescents in households already receiving the Productive Social Safety Net (PSSN) cash transfer and provides a combination of training and mentoring services, with a focus on livelihoods and sexual and reproductive health (SRH)[1]. This shows that the cash plus programme can be adopted. Kenya has made a vital milestone by introducing cash transfers for social protection, which aims to eradicate poverty and improve livelihoods. Despite the achievement, cash plus programme remains unpacked.
Lessons from other countries
Countries vary in their approaches to cash plus programmes, with some implementing unique strategies while others may lack certain components crucial for effectiveness. For instance, Brazil’s Bolsa Família programme of 2003 stands out for its holistic approach, combining cash transfers with conditionalities related to healthcare and education. The government plays a key role in funding this programme. Conversely, Kenya falls short of comprehensive components addressing these vital areas.
Further, programmes such as Mexico’s Oportunidades demonstrate the importance of integrating cash assistance with access to essential services; i.e education and healthcare for better outcomes. Rwanda’s Vision 2020 Umurenge Programme illustrates the significance of adapting cash plus interventions to local contexts and development priorities. Additionally, lessons from successful initiatives, such as Malawi’s Social Cash Transfer Programme, underscore the importance of strong government commitment, robust monitoring and evaluation systems, and partnerships with international organizations such as UNICEF and the World Bank.
By learning from diverse approaches and addressing missing components, the country can enhance the effectiveness and sustainability of their cash plus programmes. While countries may implement cash plus programmes, differences in approach, integration of complementary services, adaptation to local contexts, and institutional capacity can influence their effectiveness.
Conclusion and Recommendations
Moving forward with reengineering cash transfers into cash plus programmes in Kenya requires a multifaceted approach that addresses missing components in the existing programmes. Drawing insights from successful initiatives, the country could design policies that go beyond direct cash transfer. Integration of essential services such as healthcare, education, and skills training into cash transfer programmes can significantly enhance their impact on poverty alleviation and sustainable development. Further, robust policies can prioritize comprehensive solutions, leveraging on existing infrastructure while ensuring transparent governance mechanisms to foster trust and accountability.
Furthermore, active engagement with stakeholders and continuous monitoring is paramount. Frequent evaluation enables adjustments to programmes based on feedback and performance metrics, ensuring their continued applicability and efficacy. In addition, adaptation to local contexts is crucial for success. By tailoring interventions to address specific community needs, the country can maximize the benefits of cash plus programmes and improve the well-being of its citizens.
Adequate allocation of funds is essential to support the integration of additional components and sustain the programme’s effectiveness in the long term. Further, securing increased financial resources in the budget is essential for optimizing the integration process and maximizing the impact of these combined efforts, paving the way for smoother implementation and enhanced outcomes. Collaborative efforts with civil society organizations, private institutions and faith-based organizations; diligent oversight, and sufficient funding can pave the way for transformative change in social protection initiatives, creating pathways to prosperity for all.
[1] Tanzania Adolescent Cash Plus Evaluation Team, ‘Ujana Salama: A Cash Plus Model for Safe Transitions to a Healthy and Productive Adulthood: Round 4 Findings’, UNICEF Innocenti – Global Office of Research and Foresight, Florence, January 2024.
Authors: Pamela Muhia and Eva Chebet Tangus, KIPPRA Young Professionals
