Government Cash Transfers and the Demand for Education in Kenya

Abstract

This study sought to investigate the relationship between cash transfer remittances from government to poor households and school enrolment in Kenya. While most of the studies carried out in Sub- Saharan Africa are based on an experimental evaluation design, this study utilised cross sectional data from the Government of Kenya’s 2005/2006 Integrated Household Budget Survey and a probit model as the basis of its econometric analysis. The probit regression marginal effects results from the study indicated that cash transfers positively and significantly influenced school enrolment. Similarly, size of the household, urban area residency, age of the household head and being married, positively influenced school enrolment. On the contrary, households headed by a man and the literacy levels of the male head in the household negatively influenced school enrolment. The main policy implication of this study therefore, is that cash transfers should be enhanced and should be channelled through women as opposed to men because they seem to have more priority for education in their expenditure plans in comparison to men.