Kenyan SMEs Embrace Digital Payments And Fintech Solutions For Growth

Small and medium enterprises (SMEs) in Kenya are rapidly adopting digital payment solutions, leveraging fintech, and forging strategic partnerships to drive growth and resilience, according to the latest Mastercard SME Confidence Index.

With 91% of Kenyan SMEs integrating digital transactions, businesses are enhancing efficiency, improving customer experience, and strengthening financial stability. The shift toward cashless payments underscores the increasing demand for secure and inclusive financial ecosystems. Key insights from the report reveal:

97% of SMEs plan to offer seamless and user-friendly digital payment options.
95% intend to accept payments across multiple digital platforms.
70% are prioritizing cybersecurity to ensure safe transactions.

This digital transformation is helping SMEs reduce cash dependence, improve supplier payments, and accelerate transaction processing. As technology adoption rises, fintech solutions are becoming essential tools for competitiveness in Kenya’s evolving business landscape.

Access to Credit: A Crucial Factor

Despite optimism about revenue stability and growth in 2025, SMEs continue to face economic challenges, including:

Rising costs of goods and services (71%)
Inflationary pressures (68%)

To navigate these hurdles, access to credit remains a top priority:

40% of SMEs plan to secure funding for business expansion.
21% seek credit to sustain daily operations.

Financial inclusion remains critical to SME success, with business owners advocating for stronger support from the private sector and government.

Strengthening Cybersecurity and Financial Inclusion

As digital transactions become more widespread, SMEs are also prioritizing cybersecurity to protect financial data, comply with regulatory standards, and maintain customer trust. This aligns with Mastercard’s broader commitment to equipping businesses with secure and sustainable payment solutions.

Looking ahead, Kenyan SMEs are focusing on key priorities:

95% aim to digitize operations to meet evolving customer needs.
95% emphasize team training and upskilling.
95% seek broader access to financial services.

Kenyan SMEs continue to demonstrate resilience and adaptability, embracing digital transformation to fuel economic growth. With strong private sector collaboration, government support, and innovation in fintech, SMEs are poised to drive Kenya’s digital commerce ecosystem forward.