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Does MPesa Cause Inflation? Let’s Ask our Woman in Nairobi

May 8, 2012 in Branchless Banking, From the Field | Tags: , , | by | 4 comments

 > Posted by Center Staff

The following is an excerpt from a private email conversation between two CFI staff members, Sergio Guzman (based in Washington, DC) and Leah Wardle (living abroad in Nairobi, Kenya).

Sergio writes:

Hey Leah —

I just read this article, which was tweeted by Tilman Ehrbeck at CGAP, about mobile money contributing to inflation in Kenya. The article claims that MPesa – especially since it has started allowing people to store money (creating something that looks an awful lot like a bank account) –causes Kenyans to move money around so fast that it sparks inflation. Read the rest of this entry »

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