Unravelling the Wider Benefits of Social Pensions: Secondary Beneficiaries of the Older Persons Cash Transfer Program in the Slums of Nairobi

A growing number of low and middle income countries have introduced social pension programs for older people. Research has highlighted that the impact of such programs can extend beyond the primary recipient when funds are shared. It less clear the extent to which such redistribution persists in the lowest resource settings. Using data from a survey conducted in 2016, this paper examines how recipients of the Kenyan Older Persons Cash Transfer Program (OPCTP) living in two slum communities in Nairobi reallocate their social pension by examining the characteristics of older people who are more likely to share their cash and identifying secondary beneficiaries. Findings suggest that 40% of beneficiaries re-allocate some or all of the cash received. The majority of secondary beneficiaries are either grandchildren or children of the primary beneficiary. Overall, a higher proportion of the total cash is shared with secondary beneficiaries living in rural Kenya, as compared to those living in the same household. This highlights the role played by older people, even the most vulnerable, in providing support to wider kin networks; reinforcing the argument that investing in social pensions has much broader potential societal impact than the intended aims of reducing recipient household poverty. By enhancing economic opportunities and investments in human capital more broadly, societies that invest in social pension programs may improve the overall living conditions and experiences of ageing in their countries at a critical moment of global population ageing

Shaping cash transfer impacts through “soft-conditions”: evidence from Lesotho

Cash transfer programmes have been shown to have positive effects on a variety of outcomes. While much of the literature focuses on the role of conditionality in achieving desired impact, this paper focuses on the role of ‘soft conditionality’ implemented through both ‘labelling’ and ‘messaging’ in evaluating the impact of the Child Grants Program in Lesotho, an unconditional cash transfer programme targeting poor households with orphans and vulnerable children. Beneficiary households received a clear message that the transfer should be spent on the interest and needs of children. Our findings suggest that ‘soft conditionality’ does play a role in increasing expenditure for children, especially on education, clothing and footwear. Results indicate in fact that transfer income is spent differently from general income as it exerts both an income and a substitution effect. This behavioural change is confirmed by comparing the ex-ante expected behaviours with the ex-post actual response to the programme. We find that for expenditure categories linked to the well-being of children the expost response was much higher than the ex-ante expected behaviour

The Impact of a National Poverty Reduction Program on the Characteristics of Sex Partners Among Kenyan Adolescents

Cash transfer programs have the potential to prevent the spread of HIV, particularly among adolescents. One mechanism through which these programs may work is by influencing the characteristics of the people adolescents choose as sex partners. We examined the four-year impact of a Kenyan cash transfer program on partner age, partner enrollment in school, and transactional sex-based relationships among 684 adolescents. We found no significant impact of the program on partner characteristics overall, though estimates varied widely by gender, age, schooling, and economic status. Results highlight the importance of context in exploring the potential HIV preventive effects of cash transfers