Kenya to favor Dealings in hard cash despite a Digitization ringlet.. giving drift to Mobile Money and Internet Banking

By Abdul Rahman Bangura-

Photo Credit: Depositphotos

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- According to data from the Central Bank of Kenya (CBK), aggregate currency in circulation attained an all-time high of Sh315.97 billion in June 2023, comprising Sh30 billion in bank notes and Sh10.56 billion in coins.

The Bank of Kenya details this development as a maintained need for notes and coins by banking customers.

“The net increase of currency in circulation was attributed to higher currency outflows (withdrawals) compared to net inflows),” the CBK stated.

Bank deposits of notes and inflows CBK vaults totaled Sh544 billion against Sh544 billion withdrawals, resulting in a net Sh10.6 billion to Sh544 billion circulation of physical cash.

The increased usage of notes and coins has kept on despite a clear evolution in digital payments particularly after the beginning of the Covid-19 pandemic.

David King’oo, an economist, let out that the economy sticks around primarily informal, informing the preference for bank notes and coins in payments.

“We still have a banknote of small and medium enterprises who make up the bulk of transactions in the economy, the majority of whom are yet to be digitized. It’s easy for one to sell a goat at a market, receive payments in cash and move to the next shop and pay for groceries,” he remarked.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent