Bank card payments dropped sharply in the first half of 2026 as households tightened their spending and increasingly turned to mobile money, banking apps and cash for everyday transactions.
New data shows the decline came alongside a drop in the number of cards in circulation, pointing to changing payment habits as consumers adjust to pressure on their finances.
Data from the Central Bank of Kenya (CBK) shows the value of card transactions fell to Sh220.04 billion in the six months to June 2026 from Sh248.8 billion recorded during the same period in 2025. This marks an 11.55 per cent decline in the amount spent through cards.
The fall reflects changing consumer behaviour, with more Kenyans choosing alternatives such as M-Pesa, direct mobile banking applications and cash instead of using bank cards to pay for goods and services.
The slowdown in card payments was also accompanied by a slight decline in the number of cards issued. CBK data shows cards in circulation dropped to 13.26 million in the six months to June 2026 from 13.38 million recorded during the same period last year.
The cards include prepaid, debit and credit cards.
Even as overall card numbers declined, prepaid cards continued to gain ground, rising above the two million mark during the review period. Their circulation increased to 2.2 million from 1.89 million in June 2025 as more unbanked Kenyans and businesses adopted them for cashless transactions.
Prepaid cards allow users to make purchases or withdraw money using funds loaded onto the card in advance. Unlike debit cards, they are not linked to a bank account. Banks also issue them to earn fees, hold customer funds and attract new customers, including people without bank accounts and businesses managing company expenses.
Debit cards, however, continued to lose ground, falling to 10.7 million from 11.1 million over the same period.
The latest figures add to a trend that has been seen over the past six years, with consumers steadily moving away from using bank cards to pay for goods and services in favour of cash and mobile money wallets.
Card spending was highest in January 2026, when transactions reached Sh40.6 million. The increase matched the reopening of schools for the first term, suggesting higher spending on back-to-school shopping.
Higher card transaction values were also recorded during other school opening months, including March and April.
At the same time, demand for physical cash continued to grow. Cash in circulation rose to Sh399.93 billion in June 2026 from Sh372 billion in June 2025, representing a year-on-year increase of about 7.5 per cent.
The increase points to stronger demand for physical currency and higher cash transactions across the economy as more consumers continue to rely on cash alongside digital payment options.