Safaricom to waive transaction fee for Sh1 Bn emergency cash transfer disbursed to ASAL counties

NAIROBI, Kenya Dec 10 – Safaricom will waive transaction fees for individuals receiving the Sh.1.8 billion disbursed by the government as part of  Sh.1.2 billion emergency relief cash set aside for 23 arid and semi-arid lands (ASAL) counties.

Through a partnership with the State Department of Public Service, Gender, Senior Citizen Affairs and Special Programmes, the teleco has committed to ensuring that the 360,696 households, who received Sh3000 from the cash transfer program on Thursday, would utilize the money without the added cost of transfer and withdrawal.

Safaricom Chief Executive Officer (CEO) Peter Ndegwa noted that the waiver was to ensure that individuals in drought-hit areas are able to get the full amount stipulated until the rain situation improves.

“We are happy to partner and support the government’s nationwide efforts to provide immediate relief to the affected households in ASAL counties. Besides facilitating direct cash transfers through our M-PESA bulk payment service, we have waived transaction fees (transfer and withdrawal). This will enable the beneficiaries to receive the intended full amount of Sh3000,” he said.

In October, eight counties in the 23 Arid and Semi-Arid Land (ASAL) counties were classified in the drought alarm phase. The number was scaled down to ten counties in November.

They included Garissa, Isiolo, Kilifi, Kitui, Lamu, Mandera, Marsabit, Tana River, Turkana and Wajir. Thirteen counties were listed in alert phase with the situation expected to escalate should rains fail.

According to Cabinet Secretary for Public Service, Gender, Senior Citizens Affairs and Special Programmes Margaret Kobia, the government decided to adopt cashless disbursement in order to reach the vulnerable people in the 23 counties categorized as having been adversely affected by the biting drought in the country.

“Cash transfers have proven as the most effective way to reach vulnerable persons in times of emergency with accruing benefits including real-time receipt of assistance, value for money as the beneficiary has a choice of purchase, safeguards the dignity of beneficiaries as well as stimulates local economy,” she said.

However, she revealed that 696 households did not receive the monthly stipends due to incomplete records including mobile wallets.

She further noted that the government has tightened all loose ends to ensure that the cash transfer program is not riddled with corruption.

“We have engaged county steering groups, non-governmental organizations as well as the community to ensure there are no information gaps in the program,” she added.

The criteria for identifying the beneficiaries included households with elderly persons, sick or disabled persons, malnourished children, single parent or child-headed households which were not receiving any other form of assistance from other organizations.