Business Daily (Nairobi)
6 November 2009
editorial
The government move to offer thousands of vulnerable households a monthly stipend to meet their basic needs is laudable but begs a number of questions that might derail its worthy intentions.
Poor rainfall over the last two seasons has not only left millions of Kenyans hungry but has also spurred inflationary pressure and wrecked the national budget on increased commitment towards food imports.
This has not been helped by the country's under-performing economy that has delivered more Kenyans into the poverty bracket on galloping inflation and lost earnings from layoffs, freeze in hiring and reduced business activity.
And attempts by the State to offer food aid has not eased the crisis due to corruption and the fact that aid denies the recipients the flexibility of consumption-- forcing the government to think of alternative means of protecting the most vulnerable households.
The government Wednesday announced the rollout of a cash for food plan that will see 200,000 families receive Sh1,500 monthly at an annual cost of Sh3.6 billion.
The big issue, however, is what criteria the government will use to pick the deserving households for the cash transfer.
In the past, the government has faced challenges keeping out corruption from projects aimed at cushioning the vulnerable communities.
The misuse of millions of shillings meant for resettlement of the internally displaced persons (IDPs) is a good example of how well meaning government projects can be abused.
Still, the big issues is whether the government will be able to sustain the cash based social safety net at a time when its struggling to balance the national budget amid rising expenditures and thinning revenues streams.
The Kenya Revenue Authority, which collects taxes on behalf of the government, has had mixed performance in the past 12 months.
It opened the July-September quarter-- its first quarter for 2009/10 financial year with below par performance having fallen short of its Sh128 billion revenue target by Sh4 billion.
Already, a number of key government projects including the economic stimulus plan have been delayed due to tapering revenue flows and government bureaucratic red tape.
But as the Cabinet prepares to deliberate on the cash transfer plan its would be wise that it considers another element of this noble cash transfer plan: the food for work plan.
By providing food to people in exchange for work the government will be killing two birds with one stone.
First, it will help ease the hunger pangs of millions of Kenyans, and help repair the country's battered infrastructure.
Therefore, measures should be taken to guard the cash for food plan against wastefulness and thieving hands, and additional financing plan should be considered for the success of this noble plan.
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