Money Markets
Cabinet to approve cash subsidy for poor families
Kibera slum. The monthly cash handout plan is expected to pile pressure on the government for upward adjustment of this year’s Sh860 billion budget. Photo/FILE
Posted Thursday, November 5 2009 at 00:00
The government now says the people who are unable to meet their basic food needs will withdraw Sh1,500 from the Exchequer to mitigate the high cost of living.
Worried that the cost of running the subsidy would spiral because of disbursement of small amounts of money to thousands of households Mr Odinga said only 30 per cent of the total amount earmarked for the poor will go to administration.
The balance of 7 0 per cent will go directly into supporting needy people by providing the cash on a monthly basis to meet their necessities.
The plans to allocate the needy monthly cash rations is based on a report by a government taskforce that recommends well targeted food subsidy scheme for Kenya’s poor.
The task force was established in February following approval by the Cabinet.
It reviewed and analysed the current maize flour subsidy arrangements for people living in low income neighbourhoods and developed the report to be used by the government as a guide to establishing a social welfare programme aimed at ensuring equality in Kenya.
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