GiveDirectly Kenya UBI Trial
What is it?
GiveDirectly's Kenya experiment provided unconditional cash transfers to entire villages in rural Kenya, creating a genuine test of basic income in a developing-world context. Recipients received regular payments at a scale meaningful to their local economy – far more substantial as a percentage of typical income than the Alaska dividend represents in Alaska.
What claim does it support?
The Kenya trial directly counters two related objections: that people won't work with income support, and that UBI cannot address poverty in developing economies. The evidence shows recipients not only maintained economic participation but increased it through entrepreneurship and investment.
Where is it used?
Chapter 2 cites Kenya as supporting evidence that "recipients started businesses, improved health, increased education." Unlike Alaska's passive dividend, Kenya's trial captured active behavioural changes in response to income security.
Strength of the evidence
The Kenya trial is substantial evidence, though with important context considerations:
Strengths: Designed as controlled research with clear metrics. Captures behavioural responses in a developing-economy context where survival pressure is genuine and immediate. Clear causality: recipients demonstrably started businesses and invested in education.
Caveats: Village-scale is not population-scale – psychological and social dynamics differ in small communities. Kenya's specific economic conditions (informal economy dominance, agricultural base) limit direct application to post-industrial contexts. Trial duration was finite; long-term effects remain unclear. Selection effects: volunteers self-select into the programme.
Over-reliance risk
Over-reliance risk is moderate. Kenya provides credible evidence that UBI works in extreme poverty contexts, but the book uses it primarily to support general work-disincentive claims applicable to wealthy economies too. The evidence does not directly address developed-world concerns about inflation, social meaning, or purpose in abundance.
The book's strength here lies in pairing Kenya with Alaska – showing the pattern holds across development contexts. However, more detail on the mechanisms (why people started businesses, not just that they did) would strengthen the argument.