CASH TRANSFER PROGRAM, HOUSEHOLD DEMOGRAPHICS AND BENEFICIARY’S HOUSEHOLD ECONOMIC WELFARE. A CASE OF INUA JAMII IN THARAKA NORTH SUB-COUNTY, KENYA

Abstract

Inua Jamii Cash Transfer Program aims at uplifting livelihoods of the poor and vulnerable Kenyans in line with Kenya Vision 2030. Regrettably, beneficiaries of this program are still in poverty. This study sought to determine the impact of Inua Jamii Cash Transfer Program on Beneficiaries’ Household Economic Welfare moderated by Household Demographics: A case of Inua Jamii in Tharaka North Sub-County, Kenya. Specific objectives were to determine the impact of Inua Jamii Cash Transfer Program on Beneficiaries’ Household Consumption anchored on Social Exclusion Theory. To establish the impact of Inua Jamii Cash Transfer Program on Beneficiaries’ Household Asset Holding anchored on Opportunity Theory of Poverty. To determine the impact of Inua Jamii Cash Transfer Program on Beneficiaries’ Household Access to Basic Services anchored on Social Exclusion Theory and to find out the moderating effect of number of dependents on the relationship between Inua Jamii Cash Transfer Program and Beneficiaries’ Household Economic Welfare in Tharaka North Sub-County, Kenya anchored on Theory of Change. The population targeted by the study was 562 households. A sample of 351 households was used. Sampling employed stratified simple random procedure. The study used descriptive research design and the type of data used was primary. A pilot study at Nkondi Location in Tharaka South Sub-County was conducted. Primary data was collected using structured questionnaires. The raw data underwent authentication, editing and coding. Descriptive statistics was used to analyse mean, percentages and standard deviation while General Ordered Probit Regression was used to measure the degree of association between independent variable; Inua Jamii Cash Transfer Program and dependent variable; Beneficiaries’ Household Economic Welfare. Stata version 18 software was employed in analysis. Dependent variables significance was tested using z-statistics at 0.05 significance level. Results of independent variable and its constructs: amount given, consistency of payment and accessibility of funds on household economic welfare constructs were all significant at 0.05 level thus rejecting all null hypotheses. The study concluded that Inua Jamii Cash Transfer Program has a significant impact on Beneficiaries’ Household Economic Welfare. Results showed a unit increase in Inua Jamii Cash Transfer Program would lead to an increase of (0.133), (0.216) and (0.209) on household consumption, household asset holding and household access to basic services respectively. On moderating effect of number of dependents, p-value is 0.000<0.05 rejecting the null hypothesis and concluding that number of dependents significantly moderates the impact of Inua Jamii Cash Transfer Program on Beneficiaries’ Household Economic Welfare. The study may help to improve program implementation to achieve its objectives. This study added new knowledge to future researchers. The study help officers in the Ministry of Labour and Social Protection in conducting monitoring and evaluation of the program. The study identifies a need for research on the causes of high dependency in households of the vulnerable and the reason why there is little incentive to spend cash transfer funds on business ventures.