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AEC 2010 - Targeting in Kenya’s Cash Transfer Programme for Orphans and Vulnerable Children

12-Oct-2010

This paper simulates the targeting performance of the Multidimensional Deprivation Index and Proxy Means Test approach using Kenya Integrated Household Budget Survey and the institutional setup of the Cash Transfer for Orphan and Vulnerable Children in Kenya. It reaffirms the earlier finding in the literature that there is no one preferred method or system when it comes to targeting eligible households. When we simulate the targeting performance of the MDI and PMT used previously and currently in the CT-OVC programme in Kenya, it seems that PMT consistently outperforms MDI with smaller inclusion error but under most circumstances has higher exclusion error. When the bottom 10% counting approach is used, PMT approach has a seemingly distinct advantage over MDI for both rural and urban samples. However, this apparent advantage of PMT turns out to be an artefact of the way we compare the PMT with MDI. We are comparing a PMT approach that has been customized to urban settings with a MDI approach without the necessary adjustment. Once the approaches are comparable, estimation results show that there is no discernable pattern on the relative advantage and disadvantage of them.

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