Cash remains popular mode of payment despite growth in digital payments

A new report from Financial Sector Deeping (FSD Kenya) indicates more than 92 per cent of people working in the country’s agriculture sector and 94.6 per cent of entrepreneurs receive their payments in cash. Further, 43.3 per cent of consumers in formal employment receive their payments in cash.PHOTO:COURTESY

Cash remains the most popular mode of payment in Kenya despite the rapid growth in digital payment platforms.

A new report from Financial Sector Deeping (FSD Kenya) indicates more than 92 per cent of people working in the country’s agriculture sector and 94.6 per cent of entrepreneurs receive their payments in cash. Further, 43.3 per cent of consumers in formal employment receive their payments in cash.

The findings contained in the 2016 FinAccess Household Survey further indicate only 1.3 per cent of business owners receive payments through bank transfers, while 3 per cent receive payments through mobile money.

The report comes days after the Central Bank of Kenya revealed that mobile money transactions went up by 18 per cent in 2016 to hit Sh3.3 trillion. This means Kenyans transacted more than Sh9 billion a day.

Still, the findings of the FSD Kenya report indicate the economy is still largely cash-driven, a factor that experts say e