The government has rolled out a new payment model for beneficiaries of the “Inua Jamii” cash transfer programme to make the money accessible.
CS Ukur Yattani, Kajiado County Commissioner David Kipkemei and DG Martin Moshisho.
The new model known as “Choice Model”, targets around 710, 000 people; 353, 000 cash transfer for Orphans and Vulnerable Children (OVC), 310, 000 Older persons Cash Transfer and 47, 000 of persons with Severe Disabilities Cash transfer(PWSD).
Ministry of Labour and Social Protection Cabinet Secretary (CS) Ukur Yattani said the new payment model would be moving from the old card based system to the new multiple payment system based on bank accounts that promises flexibility for the beneficiaries.
Speaking in Kajiado Monday during the official launch, Yattani noted that the new payment model is designed to respond to challenges of timely access to the government-led cash transfer program.
“We are moving from a card based payment system to account based. One of the important benefits of this new program is that it reduces distances covered by beneficiaries in accessing banking services as well as reducing over-reliance on care givers by giving beneficiaries more control of their accounts,” said the CS
He added that the card based system denied beneficiary’s choice of banks of preference as this was determined for them.
The beneficiaries were also tied to particular payment points and as such could only access their money during particular payment periods denying them flexibility. Further, the card-based payments system could not allow beneficiaries to save their money with the banks.
“This innovative account-based payment system is based on the principles of choice, flexibility, access, affordability and financial inclusion. Since it is an account-based system, funds will be sent directly to beneficiaries’ accounts giving them flexibility in accessing their funds at a time of their convenience. It further saves beneficiaries from long queues to access their money as has been the case.” Said Yattani.
Yattani further revealed that beneficiaries will have a choice of four banks; Co-operative Bank of Kenya; Equity Bank; KCB Ltd and Postbank from where they will be able to withdraw their cash for free once a month.
The banks have also been encouraged to use their numerous agents and networks across the country to pay beneficiaries thus improving access to payments.
The CS confirmed that Sh27 billion has been set aside this financial year towards the ‘Inua Jamii’ cash transfer program and a further Sh6.5 billion set aside to cater for universal health care for the elderly.