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Kenya

Cash transfers to be sent directly to beneficiaries’ accounts

Older people aged 70 years and above who were covered under the enhanced Inua Jamii programme launched this year won’t be required to open new accounts since they are already being paid through respective accounts.

NAIROBI, Kenya, Nov 29 – The government will roll out a new efficient cash transfer payment model to all the 1.3 million beneficiaries starting January next year.

Social Protection Principal Secretary Nelson Marwa said the move will see the monthly stipend of Sh2,000 going directly to the accounts of beneficiaries.

The payment plan, called Choice Model, targets all beneficiaries who have been receiving cash transfer stipends.

Labour and Social Protection Cabinet Secretary Ukur Yattani launched the exercise of opening the fresh accounts for all the beneficiaries on November 26, 2018 in Kajiado.

The process is expected to be concluded in all the 47 counties by the end of December 2018.

But older people aged 70 years and above who were covered under the enhanced Inua Jamii programme launched this year won’t be required to open new accounts since they are already being paid through respective accounts.

Those targeted in the new choice model are beneficiaries of the Orphans and Vulnerable Children programme, Older Persons Cash Transfer programme and Persons with Severe Disabilities Cash transfer programme.

“The new system is expected to be efficient to enable beneficiaries of the programme receive their stipend through bank account,” Marwa said.

Beneficiaries can access funds through their mobile phones in the new plan.

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The exercise of opening up the new accounts and maintaining them will be free of charge.

Early, this year,523,000 older citizens aged 70-plus lined up for the monthly government stipend were allowed to open up their accounts ahead of the first disbursements in June.

Each of the beneficiaries were given a chance to open accounts in any of the four selected banks. They include Kenya Commercial Bank, Equity, Co-operative and Postbank.

The banks were be expected to put in place mechanisms for efficiently delivering payments of the Inua Jamii stipend to the beneficiaries across the country.

The account opening is electronic exercise that will use biometric qualities to identify the beneficiaries.
The government’s safety net programme consists of four government cash transfer programmes namely: Cash transfer Programme for Orphans and Vulnerable Children, Older Persons, Cash Transfer, Persons with Severe Disabilities Cash transfer and the Hunger Safety Net Programme.

Payments for the enhanced cash transfer for those aged 70-plus that comes with a free medical cover through the National Hospital Insurance Fund will be backdated to March.

The Treasury allocated Sh6.7 billion last year to kick-start the scheme, covering the first half of the year to June.

The Inua Jamii 70 Years and above Cash Transfer Programme was an enhancement of the previous project initiated in 2007 and which targeted individuals aged above 65 and living in extreme poverty.

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