The use of cash transfer programmes in humanitarian contexts is growing. In comparison to in-kind assistance, cash transfers are widely praised for enhancing autonomy, reducing costs, and boosting local markets. There are various modalities of cash transfer, from food vouchers to mobile money, and cash. Yet, evidence on the relative merits of these models is scarce. Using first-hand data from 896 refugee households living in the Kalobeyei settlement in Kenya, we make use of a ‘natural experiment’ to study the relative effects of restricted versus unrestricted cash transfers to refugees. Our research shows that the switch to unrestricted cash transfers has positive impacts on asset holding and subjective well-being.