This archive report was first published on 18 July 2019.
A Lesson in the Mechanics of Money ¶
My elder brother, Joe, had a way of explaining complex concepts in simple terms. One New Year's Eve, he showed me firsthand the mechanics of money, a lesson that has stayed with me to this day.
It started when Joe took out a salary loan from Co-Op Bank using his mCo-op Cash App. He then withdrew the cash at an M-Pesa outlet, and we headed to the bus stage. As we waited, he began to explain how the money moved.
He started with the bank lending him the money, which was then transferred to his mCo-op Cash App. From there, he withdrew the cash, which was then used to pay for a room at Cool Breeze Lodge. The lady at the counter, however, didn't have the money to pay the butcher at Ng'ang'a And Son's Butchery, who had supplied her with meat earlier in the day.
Ng'ang'a then paid the farmer who supplied him with fresh meat, who in turn paid Waigwa, the vet, for a running bill at the lounge. Waigwa then paid the lady at the counter, who was able to pay Ng'ang'a, and the cycle continued.
As we walked out of the lodge, Joe turned to me and said, 'That's how money works, Munyeki. My 2k makes everyone happy, and I still got to leave with it.'
It was a simple yet puzzling lesson that has stayed with me to this day.
