Qualitative research and analyses of the economic impacts of cash transfer programmes in sub-Saharan Africa Kenya Country Case Study Report Qualitative research and analyses of the economic impacts of cash transfer programmes in sub-Saharan Africa Kenya Country Case Study Report FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2014 The From Protection to Production (PtoP) project is financed principally by the UK Department for International Development (DFID) and the Food and Agriculture Organization of the UN (FAO), with additional support from the European Union. The PtoP project is part of the Transfer Project, a larger joint effort with UNICEF, Save the Children and the University of North Carolina, to support the implementation of impact evaluations of cash transfer programmes in sub- Saharan Africa. 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Contents Acknowledgments ................................................................................................................... iv Abbreviations ........................................................................................................................... v Executive summary .................................................................................................................. 1 1. Introduction .................................................................................................................... 3 1.1 Background: the CT-OVC Programme .................................................................. 3 1.2 Research objective ..................................................................................................... 7 1.3 Methodology ............................................................................................................. 12 2. District and Community Profiles ................................................................................ 18 2.1 Owendo District, Nyanza Province ........................................................................ 20 2.2 Kagundo District, Eastern Province ...................................................................... 26 3. Research Findings ........................................................................................................ 32 3.1 Household Economy ................................................................................................ 32 3.2 Local Economy ......................................................................................................... 47 3.3 Social Networks ........................................................................................................ 52 3.4 Operational Issues ................................................................................................... 56 4. Conclusions and Recommendations ........................................................................... 61 4.1 Conclusions ............................................................................................................... 61 4.2 Recommendations .................................................................................................... 65 iii Acknowledgments We are grateful to many people in Kenya who made this report possible. Thanks are due to the Ministry of Gender, Children and Social Development, in particular Mr Musembi, Monitoring and Evaluation Co-ordinator in the Department of Children’s Services for assistance conducting the study. We would also like to thank the District Children’s Officers for Machakos, Kangundo, Rongo and Migori, and members of the Beneficiary Welfare Committees within relevant locations. Finally, importantly, thank you to individuals in the study communities for generously sharing their time and insights with us. This assessment was conducted by Oxford Policy Management and Research Guide Africa. The project manager is Simon Brook. The OPM team members were Ramlatu Attah, Eleanor Fisher and Jeremy Holland. The Research Guide Africa team members were Carol Matiko, Eunice Anyango Opul, Gabbie Steven Okoth, Hellen Staula Atieno Oromo and Rosemary Akinyi Oduor. Pamela Pozarny, FAO, joined the team during the in-country field research providing technical support. iv Abbreviations AAC Area Advisory Council BWC Beneficiary Welfare Committee CPU Central Programme Unit (CPU) CT Cash Transfer CT-OVC Cash Transfer Programme for Orphans and Vulnerable Children DCO District Children’s Officer DCS Department of Children’s Services DFID Department for International Development DOSC District Oversight Steering Committee DP Development Partner FAO Food and Agriculture Organization FGD Focus Group Discussion GOK Government of Kenya IGA Income Generating Activity KII Key Informant Interview LOC Location OVC Committee NHIS National Health Insurance Scheme NGO Non-Governmental Organization MGCSD Ministry of Gender, Children and Social Development OPM Oxford Policy Management OVC Orphans and Vulnerable Children PtoP Protection to Production UNICEF United Nations International Children’s Emergency Fund v Executive summary Background This report presents analysis and findings from a qualitative research case study conducted in July 2012 in Kenya, the second of a six-country study of the economic impact of cash transfer programmes in sub-Saharan Africa. Starting in 2004, the Kenya Cash Transfer Orphans and Vulnerable Children (CT-OVC) programme provides a social protection system through regular and predictable cash transfers (US$24 every two months) to poor households living with orphans and vulnerable children (OVC). By 2012/13, CT-OVC was reaching almost 150,000 beneficiary households across 39 districts nationwide. Research areas and key findings The research study examined the impact of the cash transfer in three interrelated areas: household economy, local economy and social networks. Household economy impacts: The CT-OVC cash transfer enabled resource-poor households to meet basic needs and prioritise children’s education without disinvesting in assets, getting into debt or pursuing detrimental coping strategies such as child labour. CT-OVC stimulated beneficiary household economic investments and strengthened sustainable livelihood strategies, but this was highly dependent on household asset base, vulnerability levels and OVC numbers. Evidence emerged of increased female decision- making power in beneficiary households although gender relations remained rooted in patriarchal social structures. The transfer was constrained in its impact by the fast- growing number of orphans taken in by beneficiaries and non-beneficiaries. Local economy impacts: The CT-OVC transfer had positive impacts on the local economy through increased beneficiary agricultural productivity, diversification of income generation, and a greater level and diversity of local economic exchange, resulting in greater money circulation and improved range of products bought and sold. On the other hand, poverty and vulnerability in beneficiary households, growing numbers of OVC and constraints within the economic and physical environment undermined realization of greater economic impact. Social networks: The CT-OVC transfer increased levels of social capital and associated risk sharing arrangements and economic collaboration. This was facilitated by a socio- economic environment of well-established and dynamic mechanisms for micro-credit, HIV/AIDS support, church-based welfare support, etc. In addition, for even the poorest households, transfers contributed to increased self-esteem and increased ability to engage in community and religious activities. However the programme threatened to undermine trust-based reciprocity within communities, particularly where there were high numbers of orphans, because of jealousy felt by non-beneficiary households with equal or greater levels of need and the perception of targeting errors related to programme operational dynamics. 1 Operational recommendations The study also explored how and why various CT-OVC operational arrangements affected impacts and raised a