HUMAN RIGHTS “We Are All Vulnerable Here” WATCH Kenya’s Pandemic Cash Transfer Program Riddled With Irregularities “We Are All Vulnerable Here” Kenya’s Pandemic Cash Transfer Program Riddled With Irregularities Copyright © 2021 Human Rights Watch All rights reserved. Printed in the United States of America ISBN: 978-1-62313-922-3 Cover design by Rafael Jimenez Human Rights Watch defends the rights of people worldwide. We scrupulously investigate abuses, expose the facts widely, and pressure those with power to respect rights and secure justice. Human Rights Watch is an independent, international organization that works as part of a vibrant movement to uphold human dignity and advance the cause of human rights for all. 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For more information, please visit our website: http://www.hrw.org 2 JULY 2021 ISBN: 978-1-62313-922-3 “We Are All Vulnerable Here” Kenya’s Pandemic Cash Transfer Program Riddled With Irregularities Glossary of Terms ............................................................................................................... i Map of Nairobi Showing Informal Settlements ................................................................... vi Summary ............................................................................................................................1 Recommendations .............................................................................................................. 9 To President Uhuru Kenyatta and the National Government ......................................................... 9 To the Ministries of Treasury and Planning, Labour and Health ................................................... 10 To the Auditor General................................................................................................................ 11 To the Ethics and Anti-Corruption Commission (EACC) ................................................................ 11 To the Parliament ...................................................................................................................... 12 The Office of the Director of Public Prosecutions ........................................................................ 12 To African Development Bank, World Bank, and International Monetary Fund ............................ 12 Methodology ..................................................................................................................... 14 I. Background ....................................................................................................................16 Poverty and Inequality in Kenya ................................................................................................. 16 Poverty and Gender in Kenya ..................................................................................................... 20 Informal Settlements in Nairobi ................................................................................................. 21 Kenya Social Protection Systems and Gaps ............................................................................... 23 II. Disproportionate Impact of Covid-19 and Related Restrictions on Nairobi’s Informal Settlements ..................................................................................................................... 26 Government’s Public Health Response ...................................................................................... 27 Impact on Informal Settlements ................................................................................................ 28 III. Responses to the Economic Impact of Covid-19 ............................................................ 33 Inua Jamii Cash Transfers .......................................................................................................... 34 Kazi Mtaani Jobs Program .......................................................................................................... 34 The Pandemic-Related Cash Transfer Program ........................................................................... 35 Private and International Donor Interventions ............................................................................ 38 IV. Cash Transfer Program Irregularities ............................................................................ 41 General Lack of Transparency .................................................................................................... 41 Lack of Enrollment Information .................................................................................................. 43 Inconsistent Application of Selection Criteria ............................................................................ 45 Allegations of Cronyism and Nepotism ...................................................................................... 49 Irregularity of Payment .............................................................................................................. 50 Inadequate Support .................................................................................................................. 51 V. Lack of Oversight and Accountability ............................................................................ 54 Poor Supervision and Oversight ................................................................................................ 54 Lack of Accountability ............................................................................................................... 56 VI. Ensuring the Right to Social Security in Kenya ............................................................. 58 Strengthen Oversight and Accountability Structures .................................................................. 58 Expand the Reach of Cash Transfers .......................................................................................... 59 Conduct Assessment and Increase Budgetary Allocation ........................................................... 59 VII. Kenya’s Legal Obligations .......................................................................................... 62 The National Constitution .......................................................................................................... 62 African and International Standards .......................................................................................... 62 Acknowledgment ............................................................................................................. 66 Annexes ........................................................................................................................... 67 Annex I: HRW Letter to Ministry of Labour and Social Protection ................................................. 67 Annex II: Response from Kenyan Government ............................................................................ 70 Annex III: Human Rights Watch Letter to African Development Bank ........................................... 75 Annex IV: Human Rights Watch Letter to International Monetary Fund ........................................ 78 4 Glossary of Terms AfDB The African Development Bank is a regional finance institution established to contribute to the economic development and social progress of African member countries. Chief A local government administrator who oversees an administrative location, the second smallest administrative unit. An assistant chief oversees a sub-location, the smallest administrative unit. Community Health Volunteer health workers in informal settlements who Volunteers support and educate their communities on health matters. County Geographical government units headed by a governor. County Commissioner A representative of the national government and head of security at the county level. Covid-19 COVID-19 is a disease caused by a new strain of coronavirus. 'CO' stands for corona, 'VI' for virus, and 'D' for disease. Formerly, this disease was referred to as '2019 novel coronavirus' or '2019-nCoV. Economic inequality This is the unequal distribution of income, wealth, and the unequal access to economic opportunities between different groups of people in a given society. EACC The Ethics and Anti-Corruption Commission is a constitutional body created by the Kenyan government “to combat and prevent corruption, economic crime and unethical conduct in Kenya through law enforcement, prevention, public i education, promotion of standards and practices of integrity and ethics.” Gross Domestic This is the total value of goods produced and services Product (GDP) provided in a country during one year. ICESCR International Covenant on Economic, Social and Cultural Rights is a multilateral treaty which requires its parties to ensure economic, social and cultural rights for everyone, including the right to social security, labor rights and the right to health, the right to education, and right to an adequate standard of living. IMF International Monetary Fund (IMF) is an organization of 190 countries with a stated mission of “working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” Informal Settlements Housing, shelter, or settlement