Impact of a cashless economy in Kenya
Otieno, Sylvester Odhiambo
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This study aims to look at the suitability of adopting a cashless economy on Kenya's economy. The objectives of this study are to find the short-term relationship between cashless payments in Kenya and the country's GDP and their overall long run effects. The first objective oflooking at the short-term relationship is observed through a Vector Autoregressive model (V AR). The long run relationship of cashless payments and Kenya is observed through a Vector Error Correction Model (VECM) which also compliments the shmi-term relationships. The variables included in the VAR and VECM are card payments, mobile transactions and electronic fund transfers as independent variables and Real GDP as the dependent variable. Granger Causality was used to check on the causality between the different variables.