In Kenya today, conversations about money often center on digital platforms like mobile money and banking apps. Yet, even as technology grows, physical cash still plays a vital role in everyday life. Despite the rapid spread of digital payments, coins and banknotes continue to matter especially for many individuals, small businesses and communities across the country.
It’s true that mobile money has become hugely popular in Kenya. A recent survey from FinAccess 2024 shows that daily use of mobile money usage was at 52.6% reflecting how many people send money, pay bills and handle routine transactions on their phones rather than with physical cash. This digital shift is visible in how merchants and institutions adopt app-based payments and bank partnerships that streamline commerce.
Still, cash remains deeply rooted in daily life for a large portion of the population. Traditional currency continues to circulate widely with the amount of physical money in use rising significantly even as digital options grow. Many Kenyans prefer having cash available because it offers immediacy and control as you can spend it right away without depending on internet access or technology. In rural and informal settings, cash is often simpler to use and widely accepted where digital infrastructure might be limited.
One reason for the persistence of cash is the scale of Kenya’s informal economy. A substantial share of trade happens outside formal banking systems in markets, local shops and transport services where cash still dominates. Researchers have found that, even with digital alternatives, most daily payments for things like food, transport and small goods are still made with physical money. For many small business owners and consumers alike, cash feels straightforward as there’s no need for technical skills or worry about apps crashing or network issues.
There are places and sectors where digital payments are moving ahead faster. Many urban residents increasingly use mobile apps for transactions with growth in account-to-account and Lipa na M-PESA transactions showing how popular digital methods are becoming. But even as these tools grow in popularity, Kenya’s financial landscape reflects a blend rather than a replacement. Both digital and cash payments are often used side-by-side depending on convenience, cost and preference.
Another reason cash persists is that some people feel it gives them a sense of privacy. Unlike digital transactions, where records are logged electronically, cash doesn’t leave a digital trail. This can matter to people who want to manage their own budgets without being monitored by banks or apps.
Cash also plays a crucial role for those who aren’t fully connected to digital systems yet. While many Kenyans have mobile money accounts, not everyone has reliable access to smartphones, the internet or bank services that make digital money seamless and convenient. For these populations, cash remains a reliable fall back.
In Kenya’s evolving payments landscape, cash isn’t disappearing anytime soon. It continues to serve as a foundation that is familiar, flexible and trusted even in a world where digital money grows by the day.( start your investment journey today with the cytonn money market fund. Call + 254 (0)709101200 or email sales@cytonn.com)
