logo
Can cash handouts replace aid? Kenya offers some answers

Can cash handouts replace aid? Kenya offers some answers

eNCA15-05-2025
NAIROBI - Three years ago, Thomas Kazungu Karisa was struggling to make ends meet as a petrol station attendant in the Kenyan county of Kilifi, when a sudden cash donation changed his life.
"My family often went to bed hungry, my children were sent home from school for unpaid fees and I was buried in debt," said Karisa, a father of five.
Now he beams at his lush farm blooming with okra, the result of a one-off donation of 110,000 Kenyan shillings (roughly $930 at the time) from a New York-based NGO, GiveDirectly.
He used the cash to lease a plot of land with two neighbours in his village of Milore, install an irrigation system and start farming.
He built up credit and bought two cows, as well as a chainsaw he rents out for 2,000 Kenyan shillings at a time.
"If they had given me food, it would have been long gone by now," Karisa told AFP.
"But with the money, I have been able to change my life."
AFP | Tony KARUMBA
GiveDirectly believes charities and NGOs should stop handing out things like food and school books, and start just sending people cash.
It has given donations to almost 1.5 million Africans, and has carried out 25 studies across the continent to measure the impact.
Fears the money would be misused or wasted were unfounded, it said. One Kenyan study found that families generated $2.50 for every $1 received.
"We can show evidence of cash having reversed domestic violence, improved child mortality, improved business outcomes, made families healthier, children accessing more education," said Caroline Teti, GiveDirectly's vice president for risk in Africa.
- 'Poverty doesn't wait' -
With the United States and other Western countries sharply cutting aid in recent months, GiveDirectly believes cash handouts offer a way to do more with less.
Traditional aid systems spend vast amounts on planning, supplies, transport, offices and expensive Western staff.
A 2022 study by the University of Washington found that back-office costs in the United States ate up 30 to 60 percent of budgets for global health projects. Much more was lost getting supplies to the final endpoint.
GiveDirectly still has overhead costs, but says 80 percent of donations goes directly into the hands of recipients.
"Cash is not a magic bullet," Teti said. Governments are still needed for fundamentals like schools, health facilities and electricity.
AFP | Tony KARUMBA
But for improving the livelihoods of the poor, cash can be effective and fast.
"Poverty doesn't wait," Teti said. "One year is enough for a girl to drop out of school... for a mother or child to die."
Other aid agencies have embraced the concept over the past 10-15 years as hundreds of studies have shown its efficacy.
The Norwegian Refugee Council now gives 20 percent of its aid in cash, but could easily give as much as 45 percent, said Tariq Riebl, its strategy and innovation director.
Even USAID -- before being gutted by the administration of President Donald Trump -- finally backed the use of cash payments in a policy paper last October, after years of internal pushback.
The only real obstacle, Riebl told AFP, is "latent conservatism" in the aid sector: "There's something more comforting about handing over a kit of non-food items or a sack of rice, than giving cash."
- 'Dilemma' -
Cash is not suitable everywhere, such as war zones where markets barely exist, or when specialist items are needed like ID cards for refugees, or HIV medication.
Doctors Without Borders (MSF), a medical organisation, has twice used cash transfers when markets collapsed: in Syria in the mid-2010s and recently in Sudan's Darfur region.
But they were exceptions.
"Cash for healthcare remains very rare," said MSF's advocacy head, Tarak Bach Baouab. "We want to be sure of the quality of our programmes so we prefer sourcing the drugs and equipment ourselves."
Nonetheless, there is a dilemma.
AFP | Luis TATO
"We're not there to tell people what to do with their lives. It's not very empowering and it creates a lot of dependency," Baouab said.
"But if you give cash to a family and they don't spend it in the right way, then we might see health outcomes diminish."
GiveDirectly sees this as a selling point for giving cash wherever possible.
"Lives can only be changed by the people who are living that life," Teti said.
"We are giving them dignity and we are giving them choice."
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

New WhatsApp platform empowers South Africans to tackle electricity and digital divide challenges
New WhatsApp platform empowers South Africans to tackle electricity and digital divide challenges

IOL News

time7 minutes ago

  • IOL News

New WhatsApp platform empowers South Africans to tackle electricity and digital divide challenges

Ben Lindeque, Co-Founder and Business Architect at Prepaid24. Image: Supplied. In a significant step towards tackling South Africa's persistent electricity supply issues and digital divide, Prepaid24 has launched the country's first full-service WhatsApp-based platform. Announced this week, this innovative collaboration with WhatsApp solutions provider Chat Inc and payment gateway Ozow aims to streamline essential transactions, putting the power of service access directly in the hands of consumers. As millions of South Africans continue to face challenges with both electricity access and digital services, the new Prepaid24 – Transact WhatsApp channel responds to a pressing need. Users can now easily purchase prepaid electricity, pay municipal accounts, buy airtime, data, and various vouchers—all through a simple and familiar WhatsApp chat interface. 'This introduction of our WhatsApp channel directly responds to the ongoing challenges South Africans face with electricity access and digital inclusion,' said Ben Lindeque, Co-Founder and Business Architect at Prepaid24. The innovative platform emerges at a time when South Africa struggles with a reliable electricity supply and is striving to enhance digital accessibility. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Despite the growing prevalence of online payments, a substantial portion of the population remains hindered by limited internet access, unfamiliarity with complex online platforms, and lacking traditional banking infrastructure. By utilising WhatsApp, one of the most widely used communication tools in the country, Prepaid24 facilitates a more inclusive, user-friendly solution. 'Like many South Africans, I found navigating websites and making online payments intimidating, especially when things didn't go as planned. That personal frustration inspired us to build something radically simpler, something that meets users where they are: on WhatsApp,' Lindeque said. How the WhatsApp platform works The operational mechanics of the new Prepaid24 platform underscore its user-centric design. Users can initiate transactions simply by sending a 'Hi' message to 060 012 2010. Following this, they can select their desired service and make payments via Ozow's Instant EFT or the Prepaid24 SmartFund, with a PayShap integration set to be introduced shortly. Purchase confirmations and tokens are delivered instantaneously through the chat as well. This service comprehensively covers over 95% of South African municipalities and Eskom meters, making it relevant to a broad demographic across the nation. Beyond offering electricity top-ups, the platform also includes vouchers for popular streaming services like Netflix, DStv, Showmax, alongside familiar shopping options such as Takealot and Pick n Pay. Jonathan Williams, Founder and CEO at Chat Inc, expressed enthusiasm for this venture. Image: Supplied. This ground-breaking platform originates from a synergistic partnership among Prepaid24, Chat Inc, and Ozow. Chat Inc, recognisably known as 'the WhatsApp people', facilitates chat commerce experiences for numerous prestigious South African brands, providing solutions ranging from lead acquisition to enterprise-grade transactional chatbot platforms. Jonathan Williams, Founder and CEO at Chat Inc, expressed enthusiasm for this venture. 'We are thrilled to power this first-of-a-kind utility purchase channel in WhatsApp and to collaborate with such an innovative partner like Prepaid24. We're passionate about innovation and building technology that feels natural, and WhatsApp is where South Africans already live,' Williams said. Ozow's involvement ensures a secure and real-time payment processing framework for all transactions. Their expertise has resulted in a seamless payment journey, allowing users to receive their tokens and vouchers within seconds. This launch signifies a substantial trend towards leveraging widely adopted messaging platforms to deliver essential services, aiming to bridge digital divides and promote financial inclusion in South Africa. 'By simplifying the process of purchasing critical utilities like electricity and everyday vouchers, the platform could benefit a significant portion of the population, particularly those in underserved communities or those less comfortable with conventional online banking methods,' added Lindeque. BUSINESS REPORT

Who makes laundry smell nice? Meet the professional 'noses'
Who makes laundry smell nice? Meet the professional 'noses'

eNCA

time2 hours ago

  • eNCA

Who makes laundry smell nice? Meet the professional 'noses'

HOLZMINDEN - In the laboratories of German fragrance and flavours giant Symrise, a citrus scent clings to the lab coats of trainees -- "noses" who are learning the art of making things smell good. These busy heroes of the world of smells and aromas shape the connection millions of consumers have with everyday items. While at high-end perfume labels, olfactory artists create scents for luxury body sprays, Symrise's experts work on everyday products that might range from mint-flavoured toothpaste to barbeque chips. Smell, a powerful sense that can trigger emotions and memories, and aroma often decide which food or beverage, cleaning or personal hygiene product ends up in the shopping cart. AFP | MICHAEL MATTHEY At Symrise's headquarters in Holzminden, a quiet town south of Hanover, each day at the company's in-house perfumery school begins the same way: sniffing out scents from dozens of tiny bottles while blindfolded. "It's just like tuning a musical instrument before you play," said Alicia De Benito Cassado, a 32-year-old former professional pianist from Spain. Her career switch into scent development was a natural step: she made her own perfumes as a teenager to match the poetry and music that she wrote. "For me, not everything has to smell good," she said. "The horror of smell also helps us discover ourselves." But commercial clients demand something different, De Benito Cassado added. "In the end, we need to create scents that are strong, beautiful, powerful -- and affordable." - Professional sniffers - AFP | MICHAEL MATTHEY Being a "nose" is a full-time job and comes with a three-year training programme. The smell of a fabric softener can be composed of 80 compounds, far more than in a premium body perfume, and the best noses can make out over 1,000 different odours while blindfolded. Shangyun Lyu, 31, came from China to study at the school and says that a professional sniffer can get by with knowing about 500 scents. Being able to break down odours into their chemical components is key. "As a kid, I just smelled jasmine or gardenia as flowers," he said. "Now, I recognise the chemicals: it's a blend of many elements." Students weigh ingredients down to the milligramme, mix, smell, and start over, often by replicating existing smells to understand their structure and then innovate from there. "When developing perfume, it is very important that several people smell it," said 56-year-old master perfumer Marc vom Ende, head of the school. "We all perceive smell differently." - 'Nose has the final say' - AFP | MICHAEL MATTHEY Pleasant smells cannot come at any cost, and the rules of the game change over time. Lilial, a chemical once prized for its floral and sweet Lily-of-the-Valley notes, has been banned in the European Union since 2022 over fears it can cause skin irritation and damage the reproductive system. Fragrances applied directly to the body have stricter regulations than detergents, said 27-year-old South African trainee Attiya Setai. "We're more restricted in raw materials and must replace banned ingredients with new compliant ones," she said. AFP | MICHAEL MATTHEY Tastes also vary across global markets, with Shangyun pointing to the example of Chinese shampoos that sell well with a young clientele there but would struggle in Europe. "Something old-fashioned in one country can be new elsewhere," he said. Cost also enters the equation. Symrise extracts aromatic compounds from wood resin, a by-product of the paper industry, in a move "that makes both economic and environmental sense", said vom Ende. It is hard to be a nose. About 500 perfumers work in the industry and 80 of them at Symrise, which has a workforce of 13,000. The company markets about 30,000 products to clients ranging from confectioners to pet food manufacturers and suncream makers. Symrise's competitors include DSM-Firmenich, headquartered in both Switzerland and the Netherlands, as well as Givaudan, another Swiss firm. AFP | MICHAEL MATTHEY

BRICS+ Series: UAE Launches US Energy Investment to Power AI Boom
BRICS+ Series: UAE Launches US Energy Investment to Power AI Boom

IOL News

time3 hours ago

  • IOL News

BRICS+ Series: UAE Launches US Energy Investment to Power AI Boom

The tallest solar power tower in the world at 260 metres is pictured at the concentrated solar thermal power (CST) Noor Energy 1 solar complex at Mohammed bin Rashid al-Maktoum Solar Park, about 50 kilometres south of Dubai, on July 19, 2025. Image: AFP The announcement came from Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (Adnoc) and UAE Minister of Industry and Technology, at the Atlantic Council's Global Energy Forum in Washington DC. At the heart of the move is a recognition that America's power infrastructure, designed for a different time, must be urgently upgraded to meet the soaring demands of the AI economy. Al Jaber introduced XRG, Adnoc's newly formed global investment arm, as the entity spearheading this transformation. The funding marks a sixfold expansion in XRG's U.S. interests and underlines a shift in strategy: acknowledging that artificial intelligence will drive demand for 50–150 gigawatts (GW) of additional installed capacity within the next five years. As a point of comparison, he noted that a single hyperscale data centre can consume 'as much electricity as a city the size of Pittsburgh', highlighting the dramatic scale of the upcoming energy challenge. 'This moment presents a once-in-a-generation opportunity,' Al Jaber stated, stressing the need for seamless collaboration between energy producers, grid operators, financiers, and policymakers. He emphasised that while ramping up power generation is crucial, the greater obstacle lies in enhancing transmission and distribution networks—the 'last mile' of energy delivery. 'You can't run tomorrow's technology on yesterday's grid,' he warned, underscoring that much of America's grid architecture remains rooted in an earlier era. Addressing the bottlenecks of outdated infrastructure, Al Jaber revealed that installing vital equipment such as transformers and turbines often takes over three years, slowing down grid expansion. To counteract this delay, an annual investment of US $300 billion in grid modernisation is essential. Globally, the scale of the issue is staggering—an estimated 2,600 GW of power production capacity currently sits idled, waiting for grid access. Next Stay Close ✕ XRG is already making inroads into the U.S. energy landscape, having invested in the largest liquefied natural gas (LNG) plant in Texas. Additionally, Masdar USA, the renewable-energy arm of Adnoc, has delivered approximately 5.5 GW of clean energy production and storage capacity spread across the east and west coasts. Both Adnoc and XRG have established a presence in Washington DC to coordinate this historic wave of investment. This initiative unfolds against a backdrop of rising geopolitical tensions between Israel and Iran. Al Jaber seized the moment to reaffirm the UAE's commitment to 'de-escalation and diplomacy', suggesting that economic collaboration remains a powerful stabilising force amid global unrest. Other senior UAE officials echoed his sense of urgency. Mariam Almheiri, CEO of 2PointZero and advisory chair to the Presidential Court, cautioned that 'time is not on our side', highlighting the necessity to move rapidly. 2PointZero, an Abu Dhabi-based holding firm, has been targeting opportunities across the AI value chain—including critical minerals and cable manufacturing—and aims to list on stock markets this year. Similarly, Mohamed Al Hammadi, CEO and MD of Emirates Nuclear Energy Company (Enec), expressed notable optimism about forging U.S. partnerships. He confirmed that nuclear energy remains a central component of the UAE's diversified energy mix. 'In the next five years, we will hopefully generate electrons with partners who are serious to capitalise on those business opportunities,' he said, signalling the potential for clean base-load energy to meet AI's hefty requirements. In combining fossil fuels, renewable energy, nuclear power, and grid infrastructure investment, the UAE is advancing a comprehensive energy blueprint. The planned US $440 billion investment represents not only a financial behemoth but also an instrument of global strategic influence. It emphasises that addressing AI's power demands requires more than adding generation capacity—it necessitates a re-engineering of the entire energy ecosystem, from source to socket. Should this programme achieve even partial success, it may herald a transformational era for the U.S. energy sector. By unlocking stalled projects and upgrading outdated networks, such a wave of investment could bolster grid reliability, reduce carbon emissions, and accelerate adoption of next-generation technologies. As AI continues its inexorable rise—touching every facet of modern life—the infrastructural foundation to support its energy appetite must evolve swiftly. For now, the UAE's vision marks a significant pivot in global energy collaboration. Anchored by XRG and endorsed by leaders across sectors, the plan extends beyond short-term profit—it offers a blueprint for securing the technological backbone of tomorrow's economy. If realised, it stands to define a new model of strategic energy partnership: dynamic, integrated, and purpose-built for an age of intelligence and innovation. Written by: *Dr Iqbal Survé Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN *Chloe Maluleke Associate at BRICS+ Consulting Group Russian & Middle Eastern Specialist **The Views expressed do not necessarily reflect the views of Independent Media or IOL. ** MORE ARTICLES ON OUR WEBSITE ** Follow @brics_daily on X/Twitter & @brics_daily on Instagram for daily BRICS+ updates

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store