EDITORIAL: Audit State cash transfer scheme before wind-up

State should immediately start an audit of the scheme establish if it served its purpose. FILE PHOTO | NMG

What you need to know:

  • As the Sh1,000 weekly cash transfer programme to the most vulnerable households comes to an end in October, the State should immediately start an audit of the scheme establish if it served its purpose.
  • The programme, implemented at a time when most families were economically battered by the Covid-19 pandemic, has offered a crucial safety net to the beneficiaries.

As the Sh1,000 weekly cash transfer programme to the most vulnerable households comes to an end in October, the State should immediately start an audit of the scheme establish if it served its purpose.

The programme, implemented at a time when most families were economically battered by the Covid-19 pandemic, has offered a crucial safety net to the beneficiaries.

It has cushioned most of the 341,958 recipient households from going hungry as their previously reliable income sources dried up. Most of the recipients live in low-income urban informal settlements, including Mathare, Kibera, Mukuru Kwa Njenga and Mukuru Kwa Reuben in Nairobi and Nyalenda in Kisumu and Bangladesh in Mombasa.

The audit should address two issues. First, whether the free cash was prudently used. Were the recipients the most deserving or did some State officials add their cronies to the list?

The concern is well founded given recent revelations of misappropriation and misuse of Covid-19 funds.

The monthly expenditure estimates for the cash transfer programme stand at Sh1.36 billion.

In the six months the programme has been running that adds up to Sh8.16 billion, which needless to say, is no small bill for the taxpayer to pick up.

It would be a disgrace if it were to turn out that some well-paid officials hatched a plot to steal the money or shortchanged Kenyans facing starvation.

Second, the audit should establish if this is the right time to terminate the cash transfer programme. All indicators show that the economy is yet to recover from the coronavirus-induced slump. In fact, a recent private sector activity survey shows that despite a slight uptick in orders, factories which offer jobs to workers from informal settlements, which the programme targeted, are still shedding jobs. In the last few months, reports have also shown that it could take up to three years for the economy to recover.

Given such forecasts, we are concerned that it could be premature to end the programme.

A proper audit is necessary to ensure that terminating the cash transfer programme before the economy has sufficiently recovered does not leave the vulnerable groups exposed to financial hardships.

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