Delivery of cash in HSNP2 is through fully operational bank account with an ATM Mastercard card. HSNP cash transfer value for July 2014 to June 2015 increased to Kshs. 5,100 paid every two months (starting from 5th July 2015). The value further increased to Kshs. 5,400 from 5th July 2016. Cash is deposited to household’s bank account on the fifth of the first month of payment cycle. To access cash a beneficiary will a) use an ATM Card at Equity’s payment agents within their sub-location b) ATMs if they have a PIN number, he/she can also access funds through an ATM and c) over the Counter of their local bank branch or any Equity branch. Communications on payments is made through HSNP field communications model where the Chiefs and Assistant Chiefs are at the center of grassroots communications.
DFID requested FSD Kenya, a not-for-profit trust, to find an appropriate financial service provider to deliver HSNP cash transfers for Phase 2 (2013-2017). FSD Kenya held a competition open to both international and Kenyan FSPs. This transparent and fair competition followed the EU procurement directive rules. All bids were assessed using the same criteria (1) Cost (2) Value to recipients/ beneficiaries (3) Ability of bidder to deliver payments to recipients (4) Ability to improve financial access to the general population of non-recipients (5) strength of solution architecture Include or exclude other criteria Using these criteria, an independent panel of experts selected Equity Bank’s proposal as the best payment mechanism for the HSNP. In the past 5 years, Equity Bank has opened up five new branches in Turkana, Moyale, Marsabit, Wajir and Mandera to support the delivery of cash transfers through bank accounts
Read more: Key messages on HSNP2 payments