The clock is ticking on the Covid-19 reliefs introduced in March to cushion Kenyans from the economic effects of the pandemic.
As funds dry up and the virus caseload rises, the government has started scaling down some of the reliefs.
The first to be knocked off is the cash transfer programme for poor households, which will end six months of social safeguards to the vulnerable. The government sends about Sh1.3 billion every month in the scheme.
But the payments will now be terminated in the first week of October, according to a plan revealed by Labour and Social Protection Cabinet Secretary Simon Chelugui in Parliament last week.
Since May, 341,958 households have received the weekly Sh1,000 stipends to cushion them from the dire economic conditions caused by the pandemic.
Mr Chelugui told legislators that the initial Sh10 billion allotted for the cash transfer scheme was disbursed by the Interior ministry via M-Pesa.
The CS said the weekly cash transfer programme aimed to reach 669,000 households in all the 290 constituencies across the 47 counties.
Mobile reliefs
Meanwhile, it is the Central Bank of Kenya (CBK) that is standing between consumers and mobile operators in their quest to resume charging transactions below Sh1,000.
The CBK unilaterally extended the mobile reliefs for another six months to the chagrin of mobile operators. The decision has given consumers until the end of the year to enjoy free transactions for Sh1,000 and below as well as free bank transactions.
The banking sector regulator said a significant increase in the use of mobile money channels by individuals in both value and number of transactions was noted after service providers removed the transaction charges."Most of the increase was in low-value transactions of Sh1,000 or less–this band accounts for over 80 per cent of mobile money transactions and charges were eliminated, which has helped cushion the most vulnerable households," CBK said."Moreover, more than 1.6 million additional customers are now using mobile money channels. However, business-related transactions have declined marginally," it said, adding that CBK notes that these measures were timely and highly effective in facilitating official and personal transfers at a time of great need."Further, CBK assesses that the increased wallet and transaction limits that were also announced have led to increased usage at higher amounts and greater convenience," CBK said.These measures will remain in place until December 31, 2020, giving consumers another four months of reliefs.But Safaricom opposed the extension for another six months, […]