Cash in circulation in the country dropped to Ksh241.96 in February, data from the Central Bank of Kenya (CBK) has shown.
The cash in circulation dropped by Ksh23.9 billion from Ksh265.87 in February 2019, a close to 10 percent drop.
In January, Ksh242.06 billion was in circulation, a Ksh20.32 billion or 7.7 percent drop from Ksh262.38 billion in January 2019.
At least Ksh7 billion cash was rendered useless by September 2019, during the phase out of the old Ksh1000 currency notes. The Ksh7 billion was never returned to the CBK.
At that time, the cash in circulation dropped to Ksh207.07 billion.
Read: Kenya Seeking Ksh115 Billion Loan To Bail Out The Economy
The situations can be attributed to limited funds in the counties, with the Treasury delaying funds for more than 27 counties.
Most counties have delayed salaries for their employees and suppliers have had their payments delayed, despite an executive order directing for payment of pending bills.
The latest World Bank Kenya Economic Update (KEU) predicts growth of 1.5 percent in 2020 in the baseline scenario, with a potential downside scenario of a contraction to 1.0 percent, if COVID-19 related disruptions in economic activity last longer.
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