The FINANCIAL — The World Bank’s Board of Executive Directors has approved a zero-interest credit of $250 million to help Kenya fight extreme poverty by setting up a potentially transformational national social safety net program, according to The World Bank Group.
The safety net, which will knit together several existing government programs into a better coordinated and more efficient system, aims to reach up to 3.3 million of the country’s poorest people by 2017, according to The World Bank Group.
While Kenya has registered strong economic growth over the past decade, 38 percent of Kenyans still live in poverty, especially in rural areas. The National Social Safety Net Program for Results will cushion Kenya’s poorest and most vulnerable households from the worst effects of crises such as drought, malnutrition, and unemployment, according to The World Bank Group.
“The new national social safety net is a brilliant investment, as it will help families break the cycle of poverty in which they may have been trapped for generations,” said Diarietou Gaye, World Bank Country Director for Kenya. “Being cushioned against devastating income losses by a small but regular transfer of money from the program helps poor people afford consistent nutrition and healthcare, and keep children in school. With these basics in place, vulnerable households are far more likely to become part of an economy that’s on the move,” he added.
The Safety Net will merge five existing programs—the Cash Transfer for Orphans and Vulnerable Children, the Hunger Safety Net Program, the Older Persons Cash Transfer, the Urban Food Subsidy Cash Transfer, and the Persons with Severe Disability Cash Transfer. The new program aims to gradually expand these existing efforts while achieving greater efficiency and coordination, including in targeting the most vulnerable people, according to The World Bank Group.
“Kenya, with its long history of various kinds of smaller cash and food transfer programs, is ready to join the global movement today among developing countries towards progressive and efficiently managed national social safety nets,” said Ritva Reinikka, World Bank Director for Human Development in Africa. “While the success of such broad national programs was first demonstrated in Brazil and Mexico, Africa has been swift to recognize their benefits, and safety nets have helped make rapid gains possible in countries like Ethiopia and Rwanda,” Reinikka added.
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