Cash based programs like conditional and unconditional cash transfer programs are very popular as a poverty reduction approach of the new millennium. They have been successful in a variety of contexts, yet the conditions under which these programs are effective and efficient in regards to the economical, physical and emotional well-being of the beneficiaries have rarely been discussed. Most literature as well as project evaluation concentrate of impacts concerning spending patterns or school enrollment rates. This paper attempts to examine the contribution of cash transfer to capabilities and the programs relation to intrinsic motivations. In order to find provide the missing information two case studies from Kenya will be examined. The conclusion is that both Conditional and Unconditional Cash Transfers contribute to the beneficiaries’ well-being and respect intrinsic motivation. However, the both approaches do not impact the same areas