The Kenya Forum | State to spend Sh76.9bn on social safety net programmes - The Kenya Forum

May 21, 2024


Loans disbursed by UWEZO Fund to women, youth, and Persons with Disabilities (PWD) groups is among those expected to witness substantial growth.

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State to spend Sh76.9bn on social safety net programmes

State to spend Sh76.9bn on social safety net programmes

UWEZO fund allocations set to increase in latest review

The government is anticipated to allocate a total of Sh76.9 billion towards social safety net programs by the conclusion of this fiscal year, marking a 16 percent increase compared to the Sh65.4 billion expended in the previous fiscal year.

An estimated increase of over 600 households, totaling 124.6 thousand, is expected to benefit from assistance this year, compared to the previous year.

According to the Kenya National Bureau of Statistics’ 2024 Economic Survey, government grants to affirmative action funds surged by 38.7 percent from Sh3.1 billion in 2022-23 to Sh4.3 billion in 2023-24. The disbursement to beneficiaries through these funds is projected to rise by 73.3 percent, reaching Sh5.2 billion in 2023-24.

KNBS Director General Macdonald Obudho noted that this increase is set to enroll an additional 740,000 women and 47,000 men as beneficiaries in the fiscal year 2023-24.

The Economic Survey also highlights a significant increase in allocation to social protection programs, climbing from Sh2.5 billion to Sh33.5 billion for the current fiscal year. Cash Transfers to Persons with Severe Disabilities are anticipated to grow by 11.4 percent to Sh1 billion, while Cash Transfers to Older Persons are expected to rise from Sh17.8 billion to Sh19.6 billion.

The Hunger and Safety Net Programme is also slated for an increase from Sh4.2 billion to Sh4.265 billion.

Furthermore, disbursements to beneficiaries are expected to rise slightly from Sh28.9 billion in 2022-23 to Sh29.5 billion in 2023-24. The number of beneficiaries of the Women Enterprise Fund (WEF) is estimated to significantly increase from 59,500 in 2022-23 to 728,000 in 2023-24, attributed to a 30.7 percent increase in government grants to WEF and adjustments in loan products.

Recurrent expenditure, comprising 87.1 percent of the social services budget, is projected to increase by 13.0 percent to Sh67 billion from Sh59.3 billion.


Loans disbursed by UWEZO Fund to women, youth, and Persons with Disabilities (PWD) groups are expected to witness substantial growth, rising from Sh110.5 million, Sh32.0 million, and Sh2.7 million in 2022-23 to Sh287 million, Sh203 million, and Sh10 million, respectively, in 2023-24. The total amount of loans disbursed is forecasted to increase by 17.6 percent.

The National Government Affirmative Action Fund (NGAAF) is also set to escalate its disbursements this year, with funding for value-addition initiatives rising by 25.1 percent from Sh511.3 million to Sh655 million. This surge is expected to benefit around 50,000 youth beneficiaries, a fourfold increase.

Additionally, the total amount allocated for the socio-economic empowerment program under NGAAF will increase from Sh290.2 million in 2022/23 to Sh451.2 million in 2023/24.

Under Access to Government Procurement Opportunities (AGPO), the amount reserved for procurement by targeted interest groups is expected to increase by 10.9 percent from Sh84.3 billion to Sh93.5 billion in this fiscal year. The value of tenders awarded is also projected to rise by 10.8 percent to Sh28.7 billion in the same period.


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