2021
Language:
English

Tax Financed Digital Cash Transfer Schemes for Social Protection in Kenya

There  are  two  forms  of  social  protection  in  Kenya;  the  contributory  scheme enforced  under  formal  employment  and  non-contributory  schemes  which  are financed by taxes. This paper focuses on the latter and specifically, tax-financed social assistance schemes in the form of digital cash transfers. The aim of these schemes  is  to address  poverty  and reduce  vulnerability  to  economic,  social, natural  and  other  shocks  and  stresses  amongst  the  marginalisedby  providing them with regular cash flows. While these social assistance schemes have been critical in improving the lives of the most vulnerable in Kenya –majority of whom are  excluded  from  the  contributory  schemes  that  are  suited  for  those  in  formal employment –none of them is large enough to adequately address the numbers of  people  in  need.  Moreover,  they  continue  to  face  policy,  administrative, programmatic as well as evidence-related/knowledge challenges that impair their efficiency and effectiveness. Therefore, a need arises to assess these tax-financed cash transfer schemes to better understand and present an accurate reflection of the current state of affairs. In so doing, this paper provides recommendations for Kenya’s  tax-financed  social  benefits  schemes  in  order  to  improve  coverage, address poverty and reduce vulnerability.