Evolution of banking services in Kenya

I'm not an expat in Kenya, yet, and so I am not in a position to answer Cheryl's question directly.  But Kenya is a country high on my list of contenders, for various reasons.  And I notice that Cheryl has asked this same question for many other countries on this website.   I am keenly aware of the need for financial services wherever you are, and aware of what is going on in my country and around the world regarding potential changes to monetary systems.  So I have a number of general points to make.

1. Current electronic payment systems make life very convenient.  Still, transactions are not executed instantly.  It takes a couple of days for transactions to be finalized.  And there are always fees at some point, so they cost you money for that convenience.

2a. There is a big move around the world for CBDCs (Central Bank Digital Currencies).  CBDC transactions will be instant.  In order to do this, Central Banks, and the Government, will need to know your location at the time of the transaction, and will need to know what it is you are buying.  This information is not necessary for either a cash transaction or a current electronic transaction. 

2b. This also means that “they” can prevent any transactions which you might attempt.  Transactions can also be tied to your future “social credit score”, which means if, in the judgement of the Central Bank, Government, or any other “authorized” stakeholder, considers that you are not behaving in the manner that “they” want you to behave, then your score will suffer accordingly.  In this event your own money can be frozen at the push of a button, or even confiscated.

2c. There are a number of countries that have already rejected CBDCs.  Some of these that I know about are Senegal, Denmark and Ecuador.  Other countries have halted their research.  And there could be more as others continue to progress.  The point is if you want freedom then you need to consider banking in one of these countries, or places that are not closely aligned with the western world's push for CBDCs.

2d. Kenya is currently in the research phase and so I will be keenly watching any developments.

3a. Personally, I now use cash whenever I can.  We will all need banking services somewhere however.  So I am doing my own research to find out where the better places are that meets my needs, including how to protect my assets from being frozen, for any reason.  For me, I have decided that I don't have to have a bank account in the same country I reside.

3b. Many people these days don't use cash. I had a conversation about this recently and the person just continually complained about how to balance his books at the end of the day, and how much easier it is when everything is managed electronically.  I pointed out that humans were using cash, or similar, for a thousand years or so, and no-one ever had a problem, but now, all of a sudden, it's just all too hard.

To sum up, if freedom is important for you, then use cash where possible.  Find a bank account which is capable of operating internationally, and located in a country other than your place of residence, if CBDCs are likely.  Which means that we shouldn't get wedded to the idea that banking in Kenya, or anywhere, is an absolute necessity.  The reduction in convenience is a small price to pay.