dc.description.abstract | Cash transfers are important in relieving both the direct and opportunity costs
of utilizing public social services such as health and education. Cash transfers
have a direct effect on the welfare of poor households and provide general
livelihood support. Although the level of the transfer may not be sufficient in
itself to lift households out of poverty, the benefit of a cash transfer immediately
relieves the economic hardships that poor households may be facing. However,
there are very few studies conducted on the effect of cash transfers especially for
Kenya. This study uses a micro-simulation method to evaluate non-conditional
cash transfer programmes and the ex-ante programme effect on poverty and
inequality by simulating selected targeting criteria.
The study established that targeting is useful in maximizing the program’s effect
and effectiveness. Nevertheless, targeting and monitoring can increase the cost
per beneficiary, which reduces the programme’s efficiency. On the other hand,
designing a programme with a weak or non-existent targeting strategy not
only reduces the cost per beneficiary but also leads to leakages to the non-poor.
These have negative consequences on the programme’s effect and effectiveness.
The study also indicates the importance of political support for in cash transfer
programme implementation and the need for effective coordination across
different sectors in government, among them education, health, finance and
social welfare. | en |