MONEY

Kenya's move to a cashless economy slow but steady- survey

In Summary

• Kenya's move to a cashless economy is moving steady depsite progress a new survey shows.

• Kenyan preference for cash has decreased from the rate of 85 per cent recorded in 2017

 

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Kenya's move to a cashless economy is moving steady depsite progress a new survey shows.

Consumer Insight report shows that 77 per cent of Kenyans primarily use cash for their commercial transactions, despite cash-free options in the Kenyan market thriving.

Cash is still a mighty long way from losing its currency among majority of Kenyans,” it stated.

The report added that overall Kenyan preference for cash has decreased from the rate of 85 per cent recorded in 2017, while mobile money usage has grown to 14 per cent in 2019 from 8 per cent in 2017, indicating the small movement.

Data published by Central Bank of Kenya in May showed that the volume of money moved through mobile phones in the first three months of 2019 rose by 10.7 per cent to Sh1.1 trillion.

The value of transactions in March only had rose by 12.3 per cent to Sh368.39 billion, an all-time high in a single month.

Similarly, number of transactions through ATMs, prepared, charge, credit and debit card, and POS machines in the four months to April declined slightly by 3.16 per cent to 31.83 million compared to 32.87 million recorded over same period in 2018.

This is despite a increase in their value by 43.8 per cent to Sh227.51 billion from Sh158.19 billion over the period.