This archive report was first published on 19 September 2019.
On September 19, 2019, the Cabinet Secretary for Devolution announced a shift in the government's drought and famine assistance policy, opting for cash transfers over physical food provision. This change aims to empower recipients to purchase food according to their preferences, a move that has both supporters and critics.
While some see this as sound thinking, others are skeptical, citing the government's tendency to misuse technology and funds. They argue that this new approach will only lead to more theft and mismanagement. Despite the government's poor track record in implementing digital solutions, the use of cash transfers has shown promise in supporting vulnerable Kenyans.
Audits have revealed that a significant portion of cash transfers reaches intended recipients, and independent reports demonstrate the effectiveness of direct cash payments in preserving personal autonomy. This approach also eliminates the need for laborious procurement systems and reduces storage and transportation costs.
Experts, including Amartya Sen, have concluded that famines are not caused by a shortage of food but by the inability to acquire it. Institutions like Give Directly have successfully implemented large-scale cash transfer experiments, showing that poorer individuals, including those in Kenya, make responsible decisions about financial resources.
However, concerns about the government's financial management capabilities persist. Many Kenyans question whether a country plagued by corruption can be trusted to disburse cash effectively. To alleviate these concerns, the government must demonstrate transparency and accountability in its financial management.
One possible solution is to partner with private providers to manage the cash transfer mechanism, externalizing the risk of losses and ensuring accountability. Ultimately, the success of this policy depends on the government's commitment to transparency and good governance.
Kwame Owino is the chief executive officer of the Institute of Economic Affairs (IEA-Kenya), a public policy think tank based in Nairobi.
