Empowering Vulnerable Families: World Bank’s Economic Inclusion Programme to Transform 10,000 Lives

In a powerful partnership between the World Bank and the Kenyan government, a significant effort is underway to combat extreme poverty in some of the country’s most underserved regions. From October 2024, over 10,000 vulnerable families, drawn from arid and semi-arid areas in 25 counties, will begin receiving a one-time seed capital of Sh30,000 each. This initiative, dubbed the Economic Inclusion Programme, aims to lift these families from the clutches of poverty by empowering them to establish income-generating ventures. This financial boost comes with a promise of mentorship and guidance, marking a significant step toward long-term economic sustainability.

A Step Toward Eradicating Extreme Poverty

At its core, the Economic Inclusion Programme seeks to provide a lasting solution to economic vulnerability. The programme will target 15,000 extremely vulnerable households, helping them transition from hand-to-mouth survival to self-sufficient livelihoods through sustainable small business projects. In addition to the Sh30,000 seed capital, each household will receive a monthly stipend of Sh2,000 to help cover essential costs like food.

Joseph Motari, the Principal Secretary for Social Protection and Senior Citizens’ Affairs, emphasized the long-term nature of this support. Speaking during his recent visit to several beneficiaries in Murang’a County, Motari highlighted the programme’s goal of not only providing temporary relief but equipping families with the tools they need to break the cycle of poverty.

“The pilot programme was carried out in five counties in 2020, and now we are implementing the second phase, which covers 25 counties. This programme aims to graduate the poor from extreme poverty to a level of earning income through small projects,” said Motari.

While the project currently focuses on arid and semi-arid regions, Motari expressed the government’s desire to expand the programme nationwide. The initial focus on these counties acknowledges the disproportionate impact of poverty in these areas, where access to resources and opportunities is often severely limited due to geographic and environmental challenges.

The Road to Self-Sufficiency: Mentorship and Monitoring

One key feature of the Economic Inclusion Programme is the provision of mentorship to beneficiaries. These mentors will guide families on viable business ideas, helping them transform the seed capital into thriving enterprises. By pairing financial assistance with expert advice, the programme increases the likelihood of long-term success for the beneficiaries.

Motari also revealed that the funds would be disbursed in two tranches to ensure responsible financial management. Initially, each household will receive Sh20,000, followed by an additional Sh10,000. This staged approach allows for close monitoring of how the seed capital is used, ensuring that the funds are prudently invested in projects with long-term potential.

“The beneficiaries will be monitored and guided to ensure the seed capital funds are prudently utilized. Our target is to see the families left in a better financial position,” Motari said. This structured and phased distribution of funds reflects the government’s emphasis on accountability and responsible use of resources.

The mentors play a critical role in this process, providing continuous support and expertise to ensure that the projects not only survive but thrive. By helping families develop sound business plans and offering ongoing advice, the programme seeks to maximize the impact of the seed capital. The success of this model is evident in the experiences of those who participated in the pilot phase, many of whom have expanded their small businesses into medium-sized enterprises.

A Look Back: The Success of the Pilot Phase

The Economic Inclusion Programme first launched in 2020 as a pilot project in five counties. Its results have been overwhelmingly positive, with many families transitioning from dire poverty to financial independence. Principal Secretary Motari highlighted the success stories of the first cohort, explaining how many of these families have managed to expand their businesses significantly.

“Families that were included in the pilot phase are doing well. The majority established small businesses that are currently growing to medium investments, and that’s the goal of this programme — graduating the poor to a better economic level,” Motari stated.

One such success story is that of Mary Nduta, a widow from Kabuta in Murang’a East Subcounty. Nduta used the Sh30,000 seed capital she received in 2021 to set up a water kiosk, which has since become her primary source of income. Before joining the programme, she relied on irregular, menial work in other people’s farms to make ends meet. Now, she runs a thriving small business, selling water to local residents and using the profits to support her family.

“The money I was given back in 2021 enabled me to open a water kiosk, and currently, I sell water to residents. I am a widow, and the enterprise helps me cater to my family’s expenses,” Nduta said. Her story is just one example of how the programme is transforming lives, helping people build sustainable businesses and gain independence.

An Inclusive, Targeted Approach

The success of the Economic Inclusion Programme is due, in part, to its highly targeted approach. The families selected to receive assistance were chosen based on data from an enhanced single register developed in 2022, which ranks households according to their level of vulnerability. The rigorous selection process involved community leaders and national government administrators, ensuring that only the most deserving families were included in the programme.

Murang’a County Commissioner Joshua Nkanatha praised the thorough vetting process, which he said was crucial to ensuring that the funds reached those who needed them most. He also assured beneficiaries that the government was committed to protecting the small businesses established by participants in the programme.

“This programme has highly assisted poor families who were included in cohort 1, and we hope those being included in the second cohort will invest wisely with the funds they are given,” Nkanatha said. The security of these enterprises is a key concern, as the programme aims to ensure that the families can sustain their businesses long after the financial assistance ends.

Towards a Cashless Future

As part of the government’s broader digital transformation agenda, all beneficiaries of the Economic Inclusion Programme will soon receive their stipends through mobile money services. This shift towards a cashless system will help streamline the distribution process and reduce the risk of corruption or mismanagement.

According to Motari, orphans, vulnerable children, and people living with disabilities are already receiving their stipends through mobile money services. By the end of 2024, all 1.7 million beneficiaries of the government’s Inua Jamii cash transfer programme are expected to be enrolled in the mobile payment system as well.

“We are working to ensure that all the beneficiaries of the Economic Inclusion Programme and Inua Jamii will receive their stipends through mobile phones by the end of the year,” Motari said. This move reflects the government’s commitment to modernizing its social protection systems and increasing transparency.

A Blueprint for Economic Empowerment

The Economic Inclusion Programme represents a bold new approach to tackling extreme poverty in Kenya. By combining financial assistance with mentorship and monitoring, the programme provides families with the tools they need to build sustainable livelihoods. The success of the pilot phase suggests that this model has the potential to create lasting change, helping vulnerable families break free from the cycle of poverty.

As the programme enters its second phase, covering 25 counties, the hope is that it will continue to empower more families like Mary Nduta’s, providing them with the resources and guidance they need to build a better future. While challenges remain, the positive outcomes seen so far offer a blueprint for how targeted, well-structured initiatives can make a real difference in the fight against poverty.

In a world where many vulnerable populations struggle to secure even basic necessities, initiatives like the Economic Inclusion Programme offer a ray of hope. With the continued support of the World Bank and the Kenyan government, this programme has the potential to lift thousands of families out of poverty and into a future of economic independence and self-reliance.