Mastercard SME Confidence Index: Kenyan SMEs Embrace Digital Payments And Innovation To Drive Business Growth
- Most Kenyan SMEs plan to seek credit, most of them aim to drive business growth
Small and medium-sized enterprises in Kenya are actively adopting digital payments, leveraging technological advancements and building strategic collaborations to enhance growth and resilience, this is the third edition Mastercard SME Confidence Index.
91% of SMEs in Kenya are using digital payments, and businesses are improving efficiency, improving customer experience and enhancing financial stability. The shift to digitalization is reshaping SME operations, with many prioritizing secure payment solutions and broader financial inclusion to remain competitive in a rapidly growing market.
“SMEs are the backbone of the economy, driving innovation, employment and resilience. As digital transformation accelerates, SMEs unlock new opportunities through digital payments and financial inclusion. Their ability to adapt and develop in a rapidly growing business landscape reflects the strengths of the ecosystem that prioritizes access to financial, digital and sustainable growth.” President of Eastern Europe, President of the Middle East and Africa, Mastercard.
“As Kenya’s SMEs continue to embrace digital transformation, access to secure payments, financial services and strategic partnerships remains the key to their success. At Mastercard, we are committed to providing businesses with the tools and solutions they need to grow, adapt and thrive in an increasingly digital economy.” Mark Elliott, President of Africa Division, Mastercard.
SME Expands the Core Digital Payment
SMEs in Kenya are increasingly aware of the benefits of cashless transactions in driving operational efficiency and financial stability. Business owners believe that reducing cash processing, smoother supplier payments and faster transactions are key advantages of digital adoption.
Going forward, 97% of SMEs plan to offer customers simple, seamless and user-friendly payment methods, while 95% aim to accept digital payments across multiple channels. In addition, 70% of people focus on ensuring security and cybersecurity payment processing, reflecting an increasing emphasis on the secure digital financial ecosystem.
Focus on growth, cybersecurity and financial access
While many SMEs are expected to maintain or increase revenue, challenges such as rising costs of goods and services (71%) and inflation (68%) persist. To drive these obstacles, more than three-quarters of small and medium-sized businesses prioritize access to credit, 40% seek financing to expand their business, while 21% aim to maintain day-to-day operations.
The emphasis on digital transactions has also increased people’s attention to cybersecurity, and many companies have prioritized digital security measures. In addition, SMEs recognize the importance of private sector partnerships and government initiatives in providing greater financial access, viewing these collaborations as critical to long-term success.
Optimistic Challenge
Despite the challenges, 66% of Kenyan small and medium-sized businesses expect to earn the same or higher this year, indicating resilience and adaptability. To support their growth, SMEs identify key areas in need of help, including digitizing their businesses to meet changing customer needs (95%), supporting and improving team skills (95%), and accessing wider financial services (95%).
Through strategic cooperation, Mastercard is committed to supporting Kenyan small and medium-sized enterprises to achieve their growth goals. In September 2024, Mastercard partnered with Safaricom, a leading network operator in Kenya, to enable 636,000 Kenyan merchants to accept digital payments worldwide through QR codes and NFC terminals, and help digitalize.
In addition, the Mastercard Foundation for Resilientation and Sproneity Foundation announced in April 2024 is a $126 million grant program for Kenya agricultural consultants and small and medium-sized enterprises in the digital economy, providing $500,000 to $2.5 million in funding and technical assistance.
Mastercard remains committed to supporting small and medium-sized enterprises in Kenya by leveraging its extensive network, cutting-edge technology and strategic collaboration. Through working with government and private sector partners, the company continues to lead efforts to drive financial inclusion and support small businesses in the evolving business landscape.
