The Lower Eastern Times Opening The Third Eye
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A majority of small and medium enterprises (SMEs) in Kenya are increasingly turning to credit as a means to fuel their business expansion, according to the latest Mastercard SME Confidence Index report.
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These businesses are embracing digital payments, utilizing technology, and forming strategic partnerships to drive growth and resilience.
With 91% of Kenyan SMEs adopting digital payments, businesses are experiencing improved efficiency, better customer experiences, and enhanced financial stability. This shift is transforming SME operations, with many businesses prioritizing secure payment systems and broader financial inclusion to maintain competitiveness.
Kenyan SMEs are recognizing the benefits of cashless transactions, such as reduced cash handling, smoother payments to suppliers, and faster transactions. Looking ahead, 97% of SMEs plan to offer easy and user-friendly payment methods, while 95% aim to accept digital payments through multiple channels. Additionally, 70% are focused on ensuring secure payment processing, reflecting the growing importance of digital financial security.
Despite expectations for revenue growth, SMEs are facing challenges like rising costs (71%) and inflation (68%). Over 75% of SMEs emphasize the need for access to credit, with 40% seeking funding for expansion and 21% for daily operational expenses. The rise in digital transactions has also led to increased attention on cybersecurity, with businesses investing in digital security measures.
Even with market challenges, 66% of Kenyan SMEs anticipate stable or growing revenue in 2025. To support continued growth, SMEs have identified key areas requiring assistance, including business digitization (95%), workforce upskilling (95%), and expanded financial services (95%).
