Elderly people queue for food rations from a rights group. Experts say its impractical to issue stipends to all elderly people. File
What you need to know:
The Jubilee and Cord Alliances have in their manifestoes promised to increase the coverage of the scheme doled out to those aged more than 65 years, if they take power.
The limited programme in place now is supported by the World Bank, largely in marginalised areas.
Proposals by alliances contesting the March 4 General Election to expand a stipend to senior citizens have been dismissed as unworkable by experts.
The Jubilee and Cord Alliances have in their manifestoes promised to increase the coverage of the scheme doled out to those aged more than 65 years, if they take power.
“Any plan to expand the cash transfer programme is not likely to be viable given the current tax revenues. We have been running a budget deficit and our tax revenues cannot finance even our recurrent expenditure. To roll out universal cash transfer programme is clearly not possible,” said Institute of Economic Affairs (IEA) chief executive officer Kwame Owino.
The limited programme in place now is supported by the World Bank, largely in marginalised areas.
Public finance experts, during a workshop organised by IEA to discuss prebudget proposals, said taxes from only two million Kenyans who are working in the formal sector would be swamped by the demand for cash transfers.
According to data from the 2009 Census, there are 1.33 million people aged above 65 years. They would require Sh16 billion in a year, more than the Judiciary budget of Sh15.4 billion, assuming a dole of Sh1,000 per month.
Political alliances have promised some form of extension of cash transfers to old people, people with disabilities and orphaned and vulnerable children.
In its manifesto, the Jubilee Alliance says it would “create a new legislative framework to place cash transfers for the needy on a solid foundation through a new system of social protection payments administered by County Governments.”
It further says it would “increase the reach of cash transfers to attain universal coverage for older persons and persons with disabilities.”
The Cord Alliance says it would “introduce a pension scheme for those aged 65 and above; extend to all major urban centres cash transfers for the urban poor; extend cash transfers for orphans and vulnerable children and design a scheme of targeted relief to poor rural households.”
“You should only get the right to draw cash transfers in old age if you have contributed. Having a right implies there must be an obligation. People should contribute to a pension scheme in order to qualify for old age payments,” said Zimele Asset Management investment manager Sammy Muvelah.
He said some Kenyans were likely to spend without saving for old age if a non-contributory pension fund was started.
With only about three million people covered by the National Social Security Fund, which still isn’t enough to address old-age poverty, Mr Muvelah said it would be impossible to provide a comfortable living for the majority of the people in old age.
