Influence of Old Persons’ Cash Transfer Programme on Poverty Alleviation: a Case of Kibera Slum, Nairobi County, Kenya

Abstract

The Old Persons’ Cash Transfer Programme was started in 2006 to alleviate poverty among the elderly people who were living in extreme poverty. The objective of this study was to determine the factors that contribute to the success or failure of this programme and to make recommendations for improvement. This study is important because it will help Kenya and other countries engaging in similar programmes maximize usage of the limited funds to achieve higher results. The objectives of the study were to establish the influence of the consumption by the beneficiaries, the mode of cash disbursement used, the funding conditions of the programme, coverage of the cash transfer programme; and the training on financial management given to the beneficiaries on poverty alleviation. The study used a descriptive research design and systematic random sampling to study the 66 respondents of this study. Primary data was gathered using a questionnaire and interviews. This was then followed by a detailed research procedure to ensure credibility and accuracy in the data obtained. The data that was collected was then edited, coded, transcribed and then cleaned. The Statistical Package for Social Science (SPSS) version 20 was used in data analysis and the results were presented in frequency and tables. A correlation analysis was also done on the responses to determine the extent of their relationship to housing satisfaction in the Kibera slum upgrading project. The study showed that both the beneficiaries and the programme office were satisfied with the mode of cash transfer and the policies put in place to ensure proper usage of the funds. However, they were not satisfied with the amount of money provided as shown by their consumption level. Overall, 41.7% of the beneficiaries disagreed when they were asked if the programme was achieving its objective of poverty alleviation while and 50.0% of the programme officials interviewed agreed to the same question. They were also not satisfied with the coverage of the programme in reaching out to more elderly people and the training on financial management and basic business skills given. As a means to help the beneficiaries become self-reliant, the study recommended the formation of small investment groups where they can be funded to raise capital for income generating activities. The study also recommended yearly evaluation and adjustment in the amount of money allocated to the beneficiaries to match the prevailing inflation and cost of living.