Alarm as money supply falls by Sh419b amid economic crisis

The decline of cash, which is a blunt measure of the economic activity in a country, is an indicator of economic slowdown as Kenyans and corporations confront the ongoing economic crisis amid a global capital flight to perceived safer havens.

Central banks use M3 money supply figures to direct monetary policy, thereby controlling inflation, consumption, growth, and liquidity over medium- and long-term periods.