President William Ruto announced a partnership between the government and Safaricom during this year’s Jamhuri Day celebrations to distribute payments through M-Pesa agent stores, providing a fee-free disbursement service to beneficiaries.
President Ruto stated, “This program has faced challenges, with beneficiaries traveling long distances and spending significant portions of their stipends on logistics. Working with Safaricom, we have structured a new delivery mechanism for all our stipend-earning beneficiaries to receive their stipends from M-Pesa agents in their localities.”
The initiative primarily targets three vulnerable groups – the elderly, orphans, and individuals with disabilities – with the goal of easing the financial strain incurred during bank withdrawals. Orphans and persons with disabilities are set to benefit from this service starting this month, while the elderly will join the scheme from next January, allowing stakeholders time to streamline the integration processes.
President Ruto praised Safaricom for its business patriotism in offering the service without charge, acknowledging the strategic alliance between the public and private sectors to address issues faced by vulnerable populations.
Additionally, an allocation of Kshs 2.0 billion has been set aside to assist recently enrolled beneficiaries in the cash transfer program undergoing verification. The government’s commitment to expanding social safety nets is evident as stipends are set to be disbursed starting in March of next year.
The social protection fund, inaugurated in 2015 by former President Uhuru Kenyatta, provides beneficiaries with Kshs 2,000 monthly, serving as a lifeline to mitigate the harsh realities of hunger and poverty. Recent data from the Kenya National Bureau of Statistics in the Demographic Health Survey reveals that 18.9% of households rely on social assistance initiatives for survival, placing a substantial burden on taxpayers, friends, and relatives.
Statistics further indicate that senior citizens relying on social programs represent only four percent of the population, with rural households depending more heavily on assistance (19.7%) compared to urban settings (12.6%). These insights are crucial amidst economic hardships and a high unemployment rate, with figures from December last year reporting a 13.9% unemployment rate and 2.9 million Kenyans jobless.
The innovative approach of leveraging M-Pesa agents for social protection disbursements signifies a crucial step toward enhancing accessibility and reducing financial burdens for vulnerable groups. This collaborative effort between the government and Safaricom underscores the importance of public-private partnerships in addressing societal challenges and fostering inclusive economic growth.
