The World Bank has approved a $250 million (Sh 21.3 billion) loan to help Kenya support poor families.
The funds will go towards building a social safety net which will be loaned to the extremely poor over the next four year at no interest. It is expected to cushion the poor from effects of crises such as drought, malnutrition and unemployment. It targets to reach 3.3 Million poor people by 2017.
It will merge five existing programs that target orphans and vulnerable children,hunger stricken areas, the elderly, urban food subsidy and persons with severe disability.
"The new national social safety net is a brilliant investment, as it will help families break the cycle of poverty in which they may have been trapped for generations," said Diarietou Gaye, World Bank Country Director for Kenya.
While Kenya has registered strong economic growth over the past decade, 38 per cent of the population still live in poverty, especially in rural areas.
"Being cushioned against devastating income losses by a small but regular transfer of money from the program helps poor people afford consistent nutrition and healthcare, and keep children in school. With these basics in place, vulnerable households are far more likely to become part of an economy that's on the move," he said.
