Ruto: Pesa ya Wazee beneficiaries to receive funds before civil servants get paid

A file picture of Kenya's President William Ruto. [Standard]

President William Ruto has pledged timely disbursement of funds to the vulnerable groups, including the elderly.

Speaking on Tuesday, April 4 at the Kenya School of Government during the launch of the Social Protection Conference, the president said starting June 1, 2023, the vulnerable people will receive their monthly stipends before civil servants are paid their monthly salaries.

The vulnerable group includes the orphans and vulnerable children, elderly persons and persons living with severe disabilities. The funds are usually released under the Inua Jamii Cash Transfer Programme.

"The cash transfer money for the vulnerable will from June 1, 2023 be disbursed before the public service money. This will stop the delays that some time can last up to three months," Dr. Ruto said in his speech at the Kenya School of Government.

The vulnerable people are entitled to Sh2,000 each from the government every month. In some instances, when the disbursement delays by a month, they should receive Sh4,000 at the end of the second month.

The funds are used for food, shelter and health, among other needs.

In January 2023, the government was forced to intervene after the elderly and other members of the vulnerable group decried delayed disbursement of the funds. At the time, the group had last received their stipends in June 2022, a six-month delay.

The State was, thus, forced to release Sh8.6 billion in January to cater for the months of July, August, September and October. The funds directly benefited 1.07 million people.

NHIF access

In efforts to lessen the financial burden on Kenyans, and improve access to healthcare, the president also pledged to reduce the monthly NHIF charges for low-income earners from Sh500 to Sh300 by the end of 2023.

"People who earn low income, the poor and vulnerable households are receiving much-needed financial relief after the introduction of subsidised health insurance cover that will allow them later this year (2023) to pay Sh300 from the current Sh500," said Dr. Ruto.

The Head of State further said the National Hospital Insurance Fund (NHIF) cover will broaden access to cancer care services.

Currently, cancer patients, in each year, are entitled up to ten chemotherapy sessions, oral and injectable anti-cancer drugs, inpatient and outpatient oncology services, 20 sessions for radiotherapy and up to two sessions for brachytherapy.

President Ruto said that community health volunteers will also receive remuneration from the government in efforts to boost access to healthcare.

"Within the next few weeks, we will be rolling out a programme that will make it possible for us to now pay stipend to the 100,000 community health workers and volunteers," said Ruto.

Hustler Fund

The Head of State also spoke about his pet project, the Hustler Fund, revealing that some Sh1.35 billion have been saved in the scheme by Kenyans since its launch on November 30, 2022.

"When we introduced Hustler Fund, we designed it in such a way that 5 per cent of the borrowed money goes to savings. Out of the Sh23billion disbursed from Hustler Fund, Kenyans, including those who borrow between Sh500 and Sh1000, have so far saved Sh1.35billion. All these was achieved in just four months," said Ruto.

He also reiterated his push to have Kenyans save more under the National Social Security Fund (NSSF).

"Savings is not tax or a burden. That is why from last month, every [formally employed] Kenyan has been contributing 6 per cent of his or her salary to NSSF," said the president.