Posted 4/1/2024, 3:41:54 AM
Cash in Circulation Drops by $130 Million in Kenya After Holiday Season,Tax Hikes Reduce Disposable Incomes
- Cash circulating outside banks in Kenya fell by Sh13.3 billion in January, the biggest drop in 5 years since demonetization in 2019
- The drop reflects low spending after December festivities and back-to-school costs amid rising living expenses
- Final round of 2023 tax increases also reduced disposable income in January
- Demand deposits in banks rose slightly while quasi-money deposits dropped a bit
- Diaspora remittance inflows grew 10.7% month-on-month to $412.4 million in January
