Nairobi — Small and medium enterprises (SMEs) in Kenya are increasingly adopting digital payments, leveraging technology, and forming strategic collaborations to drive growth and resilience, as highlighted in the third edition of the Mastercard SME Confidence Index.

With 91 percent of SMEs in Kenya embracing digital payments, businesses are improving efficiency, enhancing customer experiences, and strengthening financial stability.

The shift is reshaping SME operations, with many prioritizing secure payment solutions and broader financial inclusion to stay competitive.

Kenyan SMEs are recognizing the advantages of cashless transactions, including reduced cash handling, smoother supplier payments, and faster transactions.

Looking ahead, 97 percent of SMEs plan to offer simple and user-friendly payment methods, while 95% aim to accept digital payments across multiple channels.

Additionally, 70 percent are focused on ensuring cyber-secure payment processing, highlighting the increasing emphasis on digital financial security.

Despite revenue growth expectations, SMEs face challenges such as rising costs (71 percent) and inflation (68 percent).

Over 75 percent of SMEs prioritize access to credit, with 40 percent seeking financing for expansion and 21 percent for daily operations.

Digital transactions have also heightened focus on cybersecurity, with businesses investing in digital security measures.

Despite market hurdles, 66 percent of Kenyan SMEs anticipate maintaining or increasing revenue in 2025.

To support growth, SMEs identify key areas needing assistance, including business digitization (95 percent), workforce upskilling (95 percent), and expanded financial services (95 percent).