Have you ever found yourself in a situation where you are unable to pay for a product or service, simply because the seller is only accepting cash and all the money you have is either in your mobile money wallet or bank?
With the popularity of digital money in Kenya, it is not uncommon to hear someone say, “I can’t remember the last time I touched physical money,” and this could well be a sentiment you identify with yourself. The ease of moving money between banks and mobile wallets and the ready availability of merchants accepting various forms of digital payments have in some cases made it unnecessary for people to need physical currency.
Yet, the reality on the ground tells a different story. Across Kenya, from vibrant urban centers to quieter rural areas, many businesses still operate primarily, if not exclusively, in cash. Think of Nairobi’s vibrant Eastleigh, where cash is often the preferred way to pay for clothing and household goods. Even businesses that embrace digital payments frequently handle significant amounts of cash.
Why the enduring appeal of physical money? For many Kenyans, cash offers a tangible sense of control and privacy. It’s a tool for budgeting and managing expenses effectively, allowing individuals to track their spending without leaving a digital trail. This preference highlights a crucial aspect often overlooked in the digital-first narrative.
While Kenya’s mobile money transactions soared to an impressive Kes 8.7 trillion in 2024, a 9.4% increase from the previous year, looking at cash circulation provides a vital counterpoint. The volume of cash in circulation reached Kes 333.8 billion in June 2024, a significant 5.6% rise compared to the previous year, according to the Central Bank of Kenya. This increase, driven by more withdrawals than deposits, suggests a growing demand for physical currency. This could be linked to Kenyans seeking ways to manage rising living costs by minimizing transaction fees, highlighting cash’s critical role in accessibility and financial inclusion, especially in rural areas and cash-based businesses.
The Central Bank of Kenya (CBK) further underscored the importance of cash by introducing a new series of banknotes in 2024. Featuring enhanced security and modern designs, these notes, bearing the signatures of key financial leaders, symbolize stability and confidence in the Kenyan economy. This commitment to a secure cash system demonstrates that the preference for cash is not just about necessity, but a conscious choice for many.
Consider the vibrant markets like Gikomba and Toi. These cash-heavy hubs often deal in large volumes and operate outside traditional banking hours, opening early and closing late. Recognizing this persistent demand, the banking sector is innovating to provide secure cash management solutions. Banks like Equity Bank are increasingly investing in self-service banking technologies, particularly Cash Deposit Machines (CDMs). These machines offer customers the convenience and flexibility of depositing cash safely and at their own convenience, outside the constraints of traditional banking hours.
Take Jesse, a trader in Gikomba market. His business thrives on cash transactions and operates well beyond the typical 9-to-5 banking schedule. For Jesse, CDMs offer a secure, transaction-free way to deposit his earnings at any time.
While specific data on CDM adoption in Kenya for 2025 is still emerging, the growing need for accessible banking solutions suggests that cash will remain a vital component of the financial landscape. Even as digital payments gain momentum, the banking sector is acknowledging and accommodating the enduring preference for cash. It continues to be a critical element of the Kenyan economy, supporting businesses, promoting financial inclusion, and providing a sense of security, stability, trust, and control for a significant portion of the population.
