World Bank and Govt Inject Ksh2,000 Monthly and Ksh30,000 Seed Capital for Murang'a Families

Ruto
President William Ruto with World Bank President Ajay Banga on the sidelines of G20 Compact with Africa Conference in Berlin Germany.
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PSC

Some families in Murang'a County and four other counties—Kisumu, Taita Taveta, Makueni, and Marsabit will soon experience a significant financial uplift as part of a joint initiative between the government and the World Bank.

The Economic Inclusion Programme (EIP) will see 1,500 vulnerable households from Murang'a East and Murang'a South sub-counties receive Ksh2,000 monthly, alongside Ksh30,000 as seed capital for income-generating projects.

This ambitious project aims to alleviate poverty and enhance the livelihoods of selected families by providing financial assistance for daily necessities and sustainable ventures.

The programme, piloted in Murang'a and four other counties—Kisumu, Taita Taveta, Makueni, and Marsabit—targets the most vulnerable, ensuring that the aid reaches those in dire need.

Lucy Gakera, Murang'a County Coordinator for Social Services, highlighted the project's dual focus on immediate consumption needs and long-term economic stability.

"The Ksh2,000 monthly support is meant to help families purchase food and essential commodities," Gakera explained. "The seed capital, disbursed in two tranches of Ksh20,000 and Ksh10,000, will enable families to establish income-generating projects."

President William Ruto and World Bank President Ajay Banga at State House, Nairobi on March 8, 2023.
President William Ruto and World Bank President Ajay Banga at State House, Nairobi on March 8, 2023.
PCS

Gakera emphasised the importance of prudent fund usage, noting that mentors have been deployed to train and guide beneficiaries on sustainable investments. "Our mentors are on the ground, ensuring that families utilise the funds wisely and invest in projects that can provide a lasting solution to their vulnerability," she added.

The families were chosen from an enhanced single register completed in 2022, which ranked households based on their vulnerability. With bank accounts being opened for the beneficiaries, the financial support is expected to commence by the end of July.

A key component of the EIP is the formation of village savings and livelihood groups. These groups aim to promote a culture of saving, helping families to continue supporting themselves after the programme concludes. "The savings are intended to support the families post-programme. They will receive guidance on effective saving to ensure self-reliance," Gakera noted.

This programme aims to supplement Kenya’s social protection which is primarily delivered through cash transfer programmes, the National Social Security Fund (NSSF), and the National Health Insurance Fund (NHIF).

These initiatives provide various forms of support, from household food security and child education to retirement benefits and health insurance. However, challenges remain in their implementation and reach, with none achieving universal coverage.

Currently, social assistance programmes, mainly in the form of cash transfers, reach about 813,381 households nationwide. The NSSF has approximately 4.6 million members, while the NHIF covers around 2.7 million contributory members and 10 million dependents. Despite these efforts, there is a clear need for more comprehensive and inclusive social protection mechanisms.

Murang'a County residents attend the launch of Youth Service Program on October 10, 2023.
Murang'a County residents attend the launch of Youth Service Program on October 10, 2023.
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Irungu Kang'ata