Do Cash Transfers Change Household Consumption Preferences? – Evidence from an Unconditional Cash Transfer in Kenya

Abstract

The Kenya Cash Transfer Programme for Orphans and Vulnerable Children (CT-OVC) is the government’s flagship social protection programme, reaching over 125,000 households and 250,000 OVC across the country as of mid-2011. The programme’s objective is to provide regular cash transfers to families living with OVC, to encourage fostering and retention of children and to promote development of their human capital. Eligible households, those who are ultra-poor and contain an OVC, receive a flat monthly transfer of US$21 (Ksh 1500). An OVC is defined as a household resident aged between 0 and 17 years old with at least one deceased parent, or who is chronically ill, or whose main caregiver is chronically ill. Beneficiary households are informed that the care and protection of the resident OVC is their responsibility for receiving the cash payment, although there are currently no punitive sanctions for non-compliance with this responsibility. (…)