*4.1.2 Cash transfers through digital platforms*

To support vulnerable members of the community, the Government of Kenya established in 2015 the Inua Jamii program, a cash transfer program, to support the beneficiaries with limited payments to help mitigate poverty and extreme hunger. It is usually paid through their bank accounts. The Government also launched a complementary nutrition program called Nutrition Improvement through Cash and Health Education (NICHE), which targets vulnerable households with cash, nutrition counseling, and child protection services to tackle undernutrition and vulnerability. They received funds in 2023, with the government releasing Sh8.6 billion to 1.1 million to Inua Jamii beneficiaries and another Sh11.2 million for NICHE. To protect beneficiaries' data and enhance efficiency, Inua Jamii has resolved to digitize payments starting in 2023.

In countries where governments set up benefit programs for the elderly and pay through bank accounts, providing support during the pandemic became swift and safe. The authorities used cash transfers to support the vulnerable, according to the World Bank study. These were one-off payments, and at times complementing existing support payments to households. Kenya, for instance, illustrates a potency that comes from leveraging digital platforms during a crisis:

### **Figure 3.** *Number of registered mobile money accounts. Source: IMF Financial Access Survey, [34].*

*Private sector firms and non-profit organizations created Shikilia to raise money and advocate for monthly cash transfers for low-income households in Kenya to offset the impact of COVID-19. Working in collaboration with GiveDirectly, a nonprofit organization that links online donors (including individual donors) with people in need, Shikilia sends monthly benefits to low-income households, many of which have lost income during COVID-19, using mobile money. One of the noteworthy aspects of the Shikilia initiative is the analysis of geospatial, demographic and telecommunications data to identify communities at greatest risk and target them for support.*

Several factors support the shift to digital platforms in Kenya. First, the government encouraged and invested in digital platforms before the pandemic. Second, commercial banks increased the lending limits, to allow more cash or digital money in the hands of the customers (see Mburu, [18]). Third, the government encouraged competitive entry for the MNOs, which promoted DFS. Fourth, the pandemic induced shifts in digital transactions by firms, including marketing; and springing up of social and religious events. Maina [45] reported that all banks in Kenya had put in place digital strategies long before the pandemic, with the latter enhancing implementation. He found that international tier 1 banks implemented diverse digital strategies during the pandemic, including digitization of more banking processes and services, creating partnerships with Fintechs and Telecoms, and introducing digital signatures and workflow automation. That said, challenges included cyber security risks, wastage of resources and time in remote working, regulatory challenges, internet access, increase in emergency investments, and resistance to change.

Maina [45] urged banks to be agile in their culture, and strategies; the policymakers to address challenges of executing digital strategies; ensure adequate policies and resources to cope with the challenges; and Central Bank of Kenya (CBK) to expedite the review and approval of new digital products and services during the pandemic and in future. Following the pandemic, CBK [46, 47] puts in place relief measures such as flexibility in the repayment of loans, extension of payment periods, and loan restructuring. To facilitate the use of digital platforms, CBK requested banks to waive all charges for balance inquiry and eliminate charges for transfers between mobile wallets and bank accounts.

The business community innovated and offered unique products to their customers beyond Kenya. This saved time and served customers' needs, as **Table 4** illustrates, across SSA and yonder.

The pandemic exposed digital divide in Kenya, like in other LICs. Lack of internet in some counties and limited cell phone uptake in some areas speak volume. Cybercrime also became an issue in Kenya, rising in 2020 during the pandemic by 30 percent. It amplified the vulnerability of connections, providing an advantage for fraudsters to maneuver [48]. Therefore, early lessons from Kenya are distinctively clear. Mobile technology was already ascending in Kenya and rose during the pandemic, and on a positive note, Kenya already has an ID system linked to the KRA PIN number. Anyone above 18 must get an ID in Kenya to transact. Nonetheless, the government still needs to act, including by addressing cyber threats, tackling supplyside gaps in the delivery of quality financial services, and improving connectivity.

### *4.1.3 Delivery of education during the pandemic*

Following the abrupt closure of schools, the Ministry of Education provided little or no clarity regarding the fate of the end-year examinations. As confusion reigned,

