GiveDirectly (Kenya)
Unconditional cash transfers of about $1,000 per household, sent by mobile money to poor households in East Africa. A faithful re-implementation of GiveWell's November 2024 model, Kenya column. GiveWell uses this program as the benchmark ("1× cash") for everything else it funds.
1.0× as much good per dollar as GiveDirectly · rank 3 of 3
Joint low 0.30×, joint high 3.3×. In its own unit: 8.60 × 10⁻³ GiveWell units of value per dollar. Change your assumptions
- 70% of the uncertainty comes from judgment calls and shared assumptions.
- 17 inputs on the result's path have no range, so they add no uncertainty here.
- Source analysis is 23 months old.
The evaluation
Summary
GiveDirectly sends about $1,000 by mobile money to each poor household it enrols in East Africa, with no conditions. GiveWell estimates the Kenya program at 0.0087 units of value per dollar. That is 2.6 times GiveWell’s older estimate for cash, the “× cash” figure it still benchmarks against. We reproduce that model exactly and use it as the site’s yardstick: every other charity is shown as a multiple of this one.
With our default assumptions the result barely moves (0.0086 units per dollar). Most of GiveDirectly’s cost is the transfers themselves, so our salary-sacrifice adjustment has little to act on. Its range runs from 0.3× to 3.3× itself. The width comes almost entirely from GiveWell’s own uncertainty about spillovers and long-run returns.
What the charity does
GiveDirectly identifies villages with high poverty rates, enrols eligible households, and sends one lump-sum transfer, now about $865 in Kenya. About 84 cents of each donated dollar reaches recipients; the rest pays for targeting, enrolment, delivery and overhead. Recipients decide how to spend it. In trials, households consume a little over half in the first year and invest the rest, mostly in livestock, roofs and small businesses.
How the impact happens
- Cash raises the household’s consumption in the first year, by about 43% over a baseline of $1.79 a day.
- The invested share pays returns over the next nine years.
- The money spent locally raises the incomes of neighbours who didn’t receive a transfer (spillovers).
- Preliminary evidence suggests the transfers reduce deaths of young children.
GiveWell values consumption on a log scale, so a dollar counts for more the poorer the person, and converts averted deaths with its moral weights.
How the model works
The model follows GiveWell’s November 2024 spreadsheet row by row. It works through program reach, then recipient consumption, spillovers and mortality. It finishes with supplementary adjustments (morbidity, development, fraud and fungibility, together +8%). Country data such as purchasing-power conversion and child mortality come from our shared Kenya facts, so other Kenya models will use the same numbers.
What drives the result
The three biggest levers are:
- How much GiveWell values consumption against deaths (a moral weight). It moves the result by about ±22%.
- How far to trust the spillover estimate. It rests on one study (Egger et al. 2022), significant only at the 10% level, so GiveWell discounts it heavily. Its internal and external validity adjustments each move the result by about ±20%.
- How long the investment returns last. This sits within GiveWell’s ±40% range.
No single input changes the result by more than about a quarter. The joint range is wider because it sets them all at once.
Where we differ from GiveWell
Only in the adjustments we add on top. These are judgments of ours and are labelled as such.
- Salary sacrifice: we treat the gap between staff pay and what staff could earn elsewhere as an in-kind donation. For GiveDirectly it is small: staff pay is about 8% of cost and the gap about 15%, so the result falls by about 1.4%.
- Shared credit: GiveDirectly delivers transfers itself, so full credit and shared credit give the same answer.
Switch to GiveWell’s model above to see their figures exactly.
Biggest uncertainties
- The mortality effect comes from preliminary, unpublished results. GiveWell halves it, and a different read of the final paper could move the result by more than our range shows.
- Spillovers are estimated in Western Kenya in 2014–2017; today’s programs run in different markets.
- Our staff cost and pay-gap figures are guesses until we extract GiveDirectly’s audited financials.
What isn’t modelled
Room for more funding, organisational strength and track record matter for a giving decision; they aren’t scored here yet. Effects on recipients’ wellbeing beyond consumption and mortality enter only through GiveWell’s supplementary adjustments.
Sources
- GiveWell, GiveDirectly’s Cash for Poverty Relief Program (November 2024), and its cost-effectiveness spreadsheet. CC BY-NC-SA 3.0 US.
- GiveWell, Re-evaluating the impact of unconditional cash transfers (blog, November 2024).
- Egger, Haushofer, Miguel, Niehaus and Walker (2022), General Equilibrium Effects of Cash Transfers, Econometrica.
What drives this result
Each bar moves one input from the low to the high end of its range, holding the rest at their central values. Log scale, as a multiple of GiveDirectly. Dashed line: central estimate.
observed estimate judgment or shared assumption
Shows the 8 inputs that move the result most. Ranges come from the source where it gives them; explainers say when a range is ours. Source: charityevals model of GiveWell, GiveDirectly's Cash for Poverty Relief Program (November 2024).
The model, row by row
Click any row for its explanation, source and formula. Formulas link to the rows they use. Values update with your assumptions.
| Row | Value | Kind |
|---|---|---|
Program reachHow many people a fixed donation reaches. The $1M donation is arbitrary; it cancels out in the per-dollar result. | ||
| $1.00M | Judgment | |
Arbitrary scale for the calculation. Any amount gives the same result per dollar. Source: cell New CEA!B4 in the original sheet | ||
| $865 | Observed | |
Average one-time transfer in Kenya, from GiveDirectly's program data. Source: GiveDirectly program data via GiveWell, cell New CEA!B5 in the original sheet | ||
| 84%79% – 89% | Observed | |
The rest pays for targeting, enrolment, delivery and overhead. Range is GiveWell's own ±6% Monte Carlo bound. Source: GiveDirectly financials via GiveWell, cell New CEA!B6; Inputs!D5:F5 in the original sheet | ||
| 971 | Calculated | |
The source reports 971; this model reproduces it. | ||
| shared fact | 2.37 | Calculated |
From the shared Kenya facts, so every model working in Kenya uses the same conversion. A dollar buys about 2.4 times as much in rural Kenya as in the US. Shared fact from Kenya: every model that needs it reads the same value. Source: World Bank, via GiveWell's GiveDirectly CEA. The source reports 2.37; this model reproduces it. | ||
| $2,049 | Calculated | |
The source reports $2,049; this model reproduces it. | ||
| 4.2 | Observed | |
Everyone in the household is assumed to share the transfer equally. Source: GiveDirectly data via GiveWell, cell Baseline!B4 in the original sheet | ||
| $488 | Calculated | |
The source reports $488; this model reproduces it. | ||
| 4,079 | Calculated | |
The source reports 4,079; this model reproduces it. | ||
Consumption gains to recipientsRecipients spend part of the transfer in year one and invest the rest, which pays off over the next nine years. Gains are valued on a log scale: a dollar is worth more to someone poorer. | ||
| $652$554 – $750 | Observed | |
About $1.79 a day. Poorer recipients gain more from the same transfer, which is a large part of why GiveWell's 2024 update raised its estimate. Range is GiveWell's ±15%. Source: GiveWell baseline consumption estimate, cell Baseline!B36; Inputs!D11:F11 in the original sheet | ||
| 43% | Estimate | |
Spent on assets such as livestock, roofs and businesses rather than consumed in year one. Returns on it show up in years 2–10. Source: GiveWell, from GiveDirectly RCTs, cell New CEA!B15 in the original sheet | ||
| 57% | Calculated | |
Formula 1 - Share of the transfer investedThe source reports 57%; this model reproduces it. | ||
| $278 | Calculated | |
The source reports $278; this model reproduces it. | ||
| 42.7% | Calculated | |
The source reports 42.7%; this model reproduces it. | ||
| 0.355 | Calculated | |
Formula ln(1 + Increase over baseline in year 1)The source reports 0.355; this model reproduces it. | ||
| 0.513 | Calculated | |
Formula Increase in ln(consumption) in year 1 * Value of raising ln(consumption) by 1 for one person for one yearThe source reports 0.513; this model reproduces it. | ||
| 2,090 | Calculated | |
The source reports 2,090; this model reproduces it. | ||
| 123%73.8% – 172% | Estimate | |
Returns on the invested 43%, decaying over nine years and discounted at 4% a year. GiveWell's best guess has gains fading faster than the Egger et al. long-run data suggest; with Egger persistence the bottom line rises by about 40%. Range is GiveWell's ±40%, its widest on any recipient input. Source: GiveWell Consumption tab, cell Consumption!B23; Inputs!D23:F23 in the original sheet | ||
| 4,663 | Calculated | |
The source reports 4,663; this model reproduces it. | ||
| 90% | Judgment | |
Gains are uneven: some go to recipients above the average baseline, who value them less on a log scale. GiveWell knocks 10% off. Source: cell New CEA!B25 in the original sheet | ||
| 4,196 | Calculated | |
The source reports 4,196; this model reproduces it. | ||
Spillovers to non-recipientsCash spent locally raises neighbours' incomes too. Based on Egger et al. (2022), heavily discounted for doubts about how well it replicates. | ||
| 2.5× | Observed | |
Each $1 transferred in Western Kenya produced about $2.50 of local economic activity. Only significant at the 10% level. | ||
| 70.3% | Estimate | |
Part of the 2.5× is the recipients' own consumption, already counted above. This keeps only the share accruing to others. Source: GiveWell GE tab, cell GE!B7 in the original sheet | ||
| 60%27% – 93% | Judgment | |
Regresses a single, marginally significant study towards GiveWell's prior that spillovers are smaller. Range is GiveWell's own, and very wide. Source: cell New CEA!B33; Inputs!D33:F33 in the original sheet | ||
| 80%32% – 128% | Judgment | |
How well the 2014–2017 Western Kenya result carries over to today's program. Above 100% means it could be stronger now. Source: cell New CEA!B34; Inputs!D34:F34 in the original sheet | ||
| 80%60% – 100% | Judgment | |
Spillovers partly reach better-off traders and business owners, who value a dollar less. Source: cell New CEA!B35; Inputs!D35:F35 in the original sheet | ||
| 67.5% | Calculated | |
Formula Egger et al. economic multiplier * Distributional adjustment (richer non-recipients) * Share of the multiplier that isn't recipients' own gain * Internal validity adjustment (spillovers) * External validity adjustment (spillovers)The source reports 67.5%; this model reproduces it. | ||
| 2,833 | Calculated | |
The source reports 2,833; this model reproduces it. | ||
MortalityPreliminary evidence that cash reduces child deaths, halved for doubts about the study. | ||
| 12.9% | Observed | |
From GiveDirectly's household rosters. Source: GiveWell Equivalence tab, cell Equivalence!B20/B41 in the original sheet | ||
| 525 | Calculated | |
The source reports 525; this model reproduces it. | ||
| shared fact | 4.11% | Calculated |
National average, from the shared Kenya facts. Shared fact from Kenya: every model that needs it reads the same value. Source: UN IGME via GiveWell. The source reports 4.11%; this model reproduces it. | ||
| 5.7% | Observed | |
57 per 1,000. Compared with the national rate for the same years to estimate how much riskier GiveDirectly's target population is. Source: cell New CEA!B44 in the original sheet | ||
| shared fact | 4.63% | Calculated |
National rate in the Egger et al. study period, from the shared Kenya facts. Shared fact from Kenya: every model that needs it reads the same value. Source: UNICEF via GiveWell. The source reports 4.63%; this model reproduces it. | ||
| 1.23× | Calculated | |
Formula Under-five mortality in the Egger et al. sample (2015–2017) / Under-five mortality, national (2016)The source reports 1.23×; this model reproduces it. | ||
| 5.06% | Calculated | |
The source reports 5.06%; this model reproduces it. | ||
| 45% | Observed | |
A 45% drop in all-cause child mortality. Preliminary and unpublished at the time. Source: Preliminary results from the Egger et al. Kenya trial, cell New CEA!B48 in the original sheet | ||
| 50%25% – 75% | Judgment | |
Halves the effect because one preliminary result this large is likely an overestimate. Range is GiveWell's own. Source: cell New CEA!B49; Inputs!D49:F49 in the original sheet | ||
| 22.5% | Calculated | |
Formula Reduction in under-five mortality from the transfer (unadjusted) * Internal validity adjustment (mortality)The source reports 22.5%; this model reproduces it. | ||
| 5.99 | Calculated | |
Formula Children under five reached * Under-five mortality in the target population * Reduction in under-five mortality (adjusted)The source reports 5.99; this model reproduces it. | ||
| 694 | Calculated | |
The source reports 694; this model reproduces it. | ||
| 50% | Judgment | |
Cash plausibly reduces adult deaths too, but there is little data. GiveWell adds half the child benefit. Source: cell New CEA!B54 in the original sheet | ||
| 1,042 | Calculated | |
Formula Units of value from child deaths averted * (1 + Adult mortality benefits, as a share of child benefits)The source reports 1,042; this model reproduces it. | ||
Supplementary adjustmentsEffects GiveWell doesn't model explicitly, each as a % of the modelled benefits. | ||
| 10% | Judgment | |
Fewer illnesses short of death. Source: cell New CEA!B59 in the original sheet | ||
| 5% | Judgment | |
Long-run gains for children, e.g. from better nutrition. Source: cell New CEA!B60 in the original sheet | ||
| 2% | Judgment | |
Net effect of the donation drawing in, or displacing, other funders. Source: cell New CEA!B61 in the original sheet | ||
| -2% | Judgment | |
Transfers that are diverted or lost. Source: cell New CEA!B62 in the original sheet | ||
| -5% | Judgment | |
Money given for one country may free up GiveDirectly money for less cost-effective work. Source: cell New CEA!B63 in the original sheet | ||
| -2% | Judgment | |
Non-recipients may feel worse off by comparison. Source: cell New CEA!B64 in the original sheet | ||
| 108% | Calculated | |
Formula 1 + Reduced morbidity + Developmental effects + Leverage and funging + Risk of wastage or fraud + Within-organisation fungibility + Psychological spilloversThe source reports 108%; this model reproduces it. | ||
Bottom line | ||
| 8,071 | Calculated | |
The source reports 8,071; this model reproduces it. | ||
| 8,717 | Calculated | |
The source reports 8,717; this model reproduces it. | ||
| 8.72 × 10⁻³ | Calculated | |
Formula Total benefits / DonationThe source reports 8.72 × 10⁻³; this model reproduces it. | ||
| 3.35 × 10⁻³ | Estimate | |
GiveWell still expresses everything as a multiple of this older figure ("× cash"). Kept so this model reproduces GiveWell's headline numbers. Source: cell New CEA!B28 in the original sheetContext only: the bottom line doesn't use this row. | ||
| 2.6× | Calculated | |
The source reports 2.6×; this model reproduces it. Context only: the bottom line doesn't use this row. | ||
Your dollar's sharecharityevals adjustments on top of GiveWell's model. With the default assumptions they change little for GiveDirectly, because most of its cost is the transfers themselves. | ||
| charityevals | 8%4% – 12% | Judgment |
About 16% of GiveDirectly's costs are not transfers (see the cost share above). We guess half of that is staff pay. GiveDirectly publishes audited financials that could pin this down; we haven't extracted them yet. Range is ours. | ||
| charityevals | 15%0% – 35% | Judgment |
How much less staff earn than they could elsewhere, as a share of what they'd earn. Field staff in Kenya are paid at or near local market rates; headquarters staff in tech, finance and operations likely take a larger cut. Range is ours. | ||
| $14,118 | Calculated | |
| 98.6% | Calculated | |
| 8.60 × 10⁻³ | Calculated | |