The value of card payments dipped by 11.55 per cent in the six months to June 2026, compared to a similar period the previous year, signalling tighter budgets among households and shifts towards other mobile money platforms like M-Pesa, direct mobile banking apps and cash.

Analysis of Central Bank of Kenya (CBK) data shows that the value of card transactions fell to Sh220.04 billion over the six months to June 2026, compared to Sh248.8 billion moved over a similar window of 2025.

“We’ve seen disposable income has shrunk, and even the Economic Survey painted a picture that private consumption is dwindling,” said Mr Churchill Ogutu, an economist and the head of research at Capital A Investment Bank.

“The impact of the war has also had an impact on how much people are spending; the decline could also be a substitution for other forms of payment like cash.”

The decline in the value of card transactions comes at a time when the number of issued cards fell to 13.26 million in the period under review.

This was a drop from 13.38 million cards in circulation in the six months to June last year.

These cards include prepaid cards, debit and credit cards.

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Prepaid cards crossed the two million mark in the half-year under review as more unbanked Kenyans and corporates enjoyed access to cashless shopping.

These cards allow you to buy goods or withdraw cash using money that you have loaded onto the card in advance. Unlike standard cards, they are not linked to a bank account.

Some banks issue them to enjoy fee income, while holding idle customer funds, and to acquire new customers by drawing in unbanked individuals and expanding their reach into corporate expense management.

These cards grew to 2.2 million from 1.89 million reported in circulation as at June 2025. Debit cards fell to 10.7 million from 11.1 million in the period under review.

Read: Government goes cashless in collection of fees for services

The use of bank cards for purchasing goods and services has been declining over the last six years, with consumers increasingly opting for alternative payment methods such as cash and mobile money wallets.

The highest value of card transactions (Sh40.6 million) was recorded in January 2026, which coincided with the start of the first term at school. This could indicate an increase in card payments for back-to-school shopping.

The value of transactions increased during the months when schools reopened, including January, March and April.

Cash in circulation rose to Sh399.93 billion in June 2026, up from Sh372 billion in June 2025, representing a year-on-year increase of about 7.5 per cent.

The rise reflects stronger demand for physical currency and higher transaction values across the economy.

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emwenda@ke.nationmedia.com