Stop Losing Money and Cars: Why Cash Is Risky and How to Use Digital Payments Safely

Marketing Peach

29 Sep 2025 — 7 min read

It’s the uncomfortable truth about car buying and car selling in Kenya. Where cash is involved (we’re talking hundreds of thousands of shillings, sometimes millions), there are clever scammers waiting to pounce.

They don’t just lurk in dark alleys; some look like respectable dealers or “friends of friends.” They know how to sound legit, how to play with your trust, and how to disappear with your money or your car.

That’s why understanding the risks of cash and how to use digital payments safely isn’t paranoia, it’s survival.

Take a look at this:

Scenario One: Buying a car and the seller disappears

You meet at what looks like a legit car yard in Nairobi. The cars are lined up, and the seller is friendly and offers you tea. It’s evening, so you don’t really pay much attention to your surroundings, plus, your work colleague or friend recommended them, and he’s there with you.

You’ve come with the cash because your friend said “It’s faster and you can drive home today.”

They show you the car.

Everything looks perfect.
No scratch, no dents, the engine purrs gently like it should. Good deal!
You hand over the cash
They begin processing the documents

It takes a bit of time. It’s becoming late, then they pull the classic line: “Bro, ni kuprocess logbook tu imebaki na portal ya NTSA inacrash maze.” They keep trying (or they try to), and you’re tired.

Your friend advises mmalize the process first thing the next morning. You have no reason not to trust him. You know him and he knows them.

The next morning, your friend is unreachable. The sellers are unreachable. The car yard is an empty lot with a “To Let” sign that wasn’t there last night. Just like that, your 550k is gone.

Scenario Two: Selling a car and ending up with fake money

You’re on the other side this time, selling your car. A “buyer” shows up, well-dressed, even comes with a mechanic, who is obviously looking for faults and a way to lowball you. He nods, buyer agrees to your price, but says he can only pay cash.

He hands you a neat stack of notes. You quickly count, it looks fine, you hand over the keys and papers. At the bank, you’re excited to deposit the money ukitegea end month so you can top up and upgrade to that sleek Mazda CX-5.

Your excitement quickly fades when the teller looks at you sad and suspicious at the same time, like you’re trying to con the bank. You don’t understand what’s going on, then she hits you with, “Sir, are you trying to bank fake notes? : Only Ksh. 20,000 are genuine.”

The rest are fake notes. Your car is gone, and the “buyer’s” phone is off.

Why these stories matter

These aren’t urban legends. They’re real scams that have drained hardworking Kenyans of their savings and property. They happen because cash is easy to fake, hard to trace, and once it’s gone, there’s no button to press for a refund.

This is where digital payments, and especially escrow services, change the game. They don’t just make things faster; they make them verifiable and give you leverage.

Why Cash is Risky and The Real Dangers of Carrying It

That comfort of cash disappears pretty fast. The moment you step out of the bank, you become a target.

Here’s the lowdown on why cash is becoming a risky endeavour.

1. The Obvious One: Theft and Insecurity

This one is a no-brainer. Carrying a large amount of cash makes you vulnerable. You start seeing every person as a potential threat.

Matatu rides become stressful.
Walking through town feels like an extreme sport.
You can't even stop for a coffee in peace.

Physical theft is a real and present danger. Why risk your hard-earned money for the sake of tradition?

2. The Disappearing Act of the Cash

Cash has no paper trail.

You withdraw Ksh. 5,000 for the week's budget. By Wednesday, it’s gone, and you can’t fully account for it.
It’s easy to overspend when you can't track it. A little here, a little there, and suddenly you're broke.
Digital payments leave a clear record.

This trail is crucial for big financial goals. Like saving up for a downpayment on a quality used car from our listings.

3. The Fake Notes Drama

Imagine paying for something significant. Only to be told some of your notes are fake. Haki, the embarrassment and the potential trouble!

Counterfeit currency is a serious issue. You can get it as change and not even realise it. The Central Bank of Kenya (CBK) works hard to fight this, but fake notes still circulate.

With digital money, what you see is what you get. Every shilling is genuine and accounted for. No drama.

4. Inconvenience is a Real Cost

Think about the time wasted.

Queuing at the bank is a whole afternoon affair. Hunting for an ATM that actually works is another mission – whether you’re withdrawing or depoting the money
Then there's the issue of exact change. Ever tried to pay for a Ksh. 50 item with a Ksh. 1,000 note early in the morning? You know the look you get.

Time is money. Digital payments are instant, saving you precious hours.

5. Lack of conditional control

If the seller says, “give me cash now, I’ll deliver the logbook next week,” you have almost no leverage. They hold more power.

With digital payments, you can set conditions, such as payment only being released after inspection and document verification.

Going Digital: Your Guide to Safer Transactions

Okay, so cash has its issues. But is the digital world really safe? Yes, if you're smart about it.

The key advantages

Audit trail & proof - each payment leaves a digital footprint.
Conditional releases & escrow - you can control release of funds until all checks clear.
Less physical exposure - no cash to carry, hide, transport.
Speed & convenience - instant transfers, receipts, transparency.
Better oversight & records - for future disputes, taxes, reporting.

Common dangers - and how they operate

These are the traps scammers and fraudsters lay for you.

Phishing & fake apps – They’ll send you a message or link: “click here to confirm your transfer,” or fake “bank portal.” Once you enter credentials, they steal your access.
SIM swap attacks – They hijack your mobile number, get OTPs, then drain your mobile money account or approve bank transfers.
Man-in-the-middle on insecure WiFi/networks – Public WiFi, or weak networks - hackers intercept traffic. Your login data is exposed.
Weak PINs, reused passwords – If your PIN is “1234” or same across many apps, a breach in one app gives attackers access to others.
Agent or insider fraud – Mobile money agents may misuse your ID info, mis-route deposits or withdrawals. A paper on privacy in mobile money agents in Kenya shows that agent-level operations introduce real privacy risks.

Since here in Kenya we are a lot comfortable with digital payments, you need to protect your information. Here’s how to use the available tools safely and with confidence:

Mobile Money: The OG of Digital Payments

M-Pesa, Airtel Money, T-Kash. These are our daily drivers. They have transformed how we handle money in Kenya.

They are convenient for everything. From paying for groceries to sending money upcountry. But even with these, you need to be sharp.

Here are some quick safety tips.

Confirm the Name: Always double-check the recipient's name before hitting send.
Use Strong PINs: Avoid obvious PINs like 1234 or your year of birth. Make it unique.
Beware of Scammers: Never share your PIN with anyone. Safaricom or Airtel will never call to ask for it.
Report Suspicious Messages: If you get a text from a "long-lost relative" asking for money, be cautious.

Banking Apps & Online Banking

Your bank is now in your pocket. Banking apps allow you to do so much more. You can pay bills and transfer large sums via Pesalink or RTGS.

This is where record-keeping shines. Every single transaction is logged for you to see. This makes budgeting and financial planning so much easier.

Keep your banking app safe.

Enable two-factor authentication (2FA) - OTP + password or biometric.
Use Official Apps: Only download your bank's app from the official Google Play Store or Apple App Store.
Avoid Public Wi-Fi: Don't do your banking on public Wi-Fi networks, like in cafes. Stick to your secure home network or mobile data.

Cards: Tap to Pay and Go

Debit and credit cards are getting more popular. The "tap to pay" feature is quick and reduces physical contact. This is great for paying at supermarkets or fuel stations.

Cards come with robust security. They have chip-and-PIN technology and banks have fraud detection systems. They often alert you via SMS for any transaction.

Protect your plastic.

Cover Your PIN: Always shield the keypad when entering your PIN.
Check for Skimmers: At ATMs, jiggle the card slot. If it feels loose, it might be a skimmer. Don't use it.
Set Transaction Limits: You can ask your bank to set a daily limit on your card for added security.

The Big One: Using Escrow Services for Safe Transactions

Escrow is a modern, secure solution. Think of it as a trusted middleman.

You, the buyer, send the payment to the middleman. The middleman holds it safely. They then give the seller the green light to hand over the car and transfer documents.

Once you confirm you have the car and everything is as it should be, you tell the middleman. Only then do they release the money to the seller. Everyone is protected.

Why Peach Cars' Escrow Eliminates Scams

At Peach Cars, we use escrow services so that all our clients have the peace of mind they deserve for such huge investments.

Our escrow service is seamless and integrated into our process. You don't have to worry about the awkward and risky cash exchange. We handle the secure part for you.

Here’s why it works so well:

Zero Cash Risk: You don’t need to visit a bank to deposit fake cash or carry huge sums of money. The entire transaction is digital and secure.
Buyer Protection: The seller doesn't get a single shilling until you have inspected the car and are completely satisfied.
Seller Confidence: Sellers know the payment is guaranteed and waiting for them once they deliver on their promise.
Complete Transparency: Both you and the seller can see the status of the payment at every step. No more guesswork.
It's All About Trust: Our service builds the trust needed for a smooth, stress-free car purchase. Usijali, we’ve got your back.

Ditching cash doesn't mean you're losing control. It means you're gaining security, convenience, and a smarter way to manage your money. For everyday life, mobile money and banking apps are perfect.

For life's biggest purchases, you need an even stronger guarantee. You need a system built on trust and security.

Ready to buy your next car without the cash-related stress? Check out our list of quality, pre-owned cars and experience the safest way to pay with digital money!