ECONOMIC IMPACTS OF CASH PAYMENTS - AN ANALYSIS OF KENYA’S ECONOMY AND PAYMENT INDUSTRY

Abstract

The general objective of this research was to identify the effects of cash payments to the Kenyan economy and how to best address it. It closely examined the existing state of cash payments and its upshots not only to the merchant/recipient but also the payer and the banks, with an aim of determining how instant bank payments could plug in to save the situation. Cash is widely used not only in Kenya but also other economies both regionally and globally. Any of its negative effects such as costliness and inefficiency, among others discussed herein, can be considered widespread and in dire need of mitigations for the sake of developing stronger economies. The specific objectives of the study were to: Investigate the cost of cash payments to the consumer, establish how cash payments affect merchants, investigate the impacts of cash payments to the banking industry and to establish the role of instant bank transfers in a cash-intensive economy. The study employed desktop study method to collect and analyze data on the effect of cash payments on the Kenyan economy. Finally, conclusion was made and recommendations proposed to address the gap identified in the study.

Key Words: Cash Payments, Banking Industry, Merchants, Bank Transfers

ITATION: Amayo, S. A. (2020). Economic impacts of cash payments - An analysis of Kenya’s economy and payment industry.  The Strategic Journal of Business & Change Management, 7(2), 102 – 111.