Enterprise Responses to Redistribution in Kenya

Research Note
Published on 27 February 2020


This project studies a randomized, large-scale unconditional cash transfer program in Kenya, and find a meaningful increase in revenues for enterprises in areas experiencing a greater volume of cash transfers. Interestingly, sales increased without noticeable changes in firm investment behavior (beyond a modest increase in inventories), and sales do not increase differentially for firms owned by cash recipient households relative to non-recipients. Both patterns suggest a demand-led rather than an investment-led expansion in economic activity. Combining enterprise and household data, we estimate a cash transfer multiplier effect of 2.7. This research note also discusses the project, "General Equilibrium Effects of Cash Transfers: Enterprise Responses".


Dennis Egger

University of California, Berkeley

Johannes Haushofer

Princeton University

Edward Miguel

University of California, Berkeley

Paul Niehaus

University of California, San Diego

Michael Walker

University of California, Berkeley