Kenyan SMEs Rapidly Adopting Digital Payments to Fuel Growth – Mastercard SME Confidence Index

Small and medium enterprises (SMEs) in Kenya are rapidly adopting digital payments, leveraging technology, and forming strategic collaborations to drive business growth and resilience, according to the latest Mastercard SME Confidence Index.

With 91% of SMEs in Kenya embracing digital payment solutions, businesses are enhancing efficiency, improving customer experiences, and strengthening financial stability. The shift toward cashless transactions reflects a growing priority for secure payment ecosystems and broader financial inclusion.

The Digital Payments Revolution in Kenya

The report highlights how digitalization is transforming SME operations. Among key findings:

• 97% of SMEs plan to offer seamless and user-friendly digital payment options.
• 95% intend to accept payments across multiple digital channels.
• 70% are focused on cybersecurity, prioritizing secure payment processing.

This shift is enabling SMEs to reduce cash handling, improve supplier payments, and process transactions faster. As digital transformation accelerates, Kenyan SMEs are leveraging fintech solutions to remain competitive in an evolving market.

"Small and medium enterprises are the backbone of economies, driving innovation, employment, and resilience," said Dimitrios Dosis, President, Eastern Europe, Middle East, and Africa at Mastercard. "As digital transformation accelerates, SMEs are unlocking new opportunities through digital payments and financial inclusion."

Access to Credit Remains a Priority

While many SMEs anticipate maintaining or increasing their revenue, challenges such as:

• Rising costs of goods and services (71%)
• Inflation (68%)

… continue to pressure business owners. To navigate these hurdles, over three-quarters of SMEs are prioritizing access to credit:

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

Financial access remains a critical enabler of SME growth, with businesses also advocating for stronger private sector partnerships and government support.

Cybersecurity Takes Center Stage

With increased reliance on digital transactions, SMEs are also emphasizing cybersecurity. Business owners recognize the importance of protecting financial transactions, ensuring compliance with regulatory standards, and fostering customer trust.

This heightened focus on cybersecurity aligns with Mastercard’s broader efforts to equip businesses with the right tools for secure and sustainable growth.

Kenyan SMEs Remain Optimistic Despite Challenges

Despite the economic uncertainties, 66% of SMEs expect their revenue to grow or remain stable in 2025. Key priorities for SME success include:

• 95% want to digitize their businesses to meet evolving customer needs.
• 95% emphasize team training and upskilling.
• 95% seek broader financial services access.

Mastercard’s Role in Driving SME Growth in Kenya

To accelerate SME digitalization, Mastercard has been actively collaborating with financial institutions, fintech firms, and government bodies. Notable initiatives include:

• Mastercard-Safaricom Partnership (September 2024): Enabling 636,000 Kenyan merchants to accept global digital payments via QR codes and NFC terminals.
• Mastercard Foundation Fund for Resilience and Prosperity (April 2024): A $126 million grant program supporting agribusinesses and digital economy SMEs with funding ranging from $500,000 to $2.5 million, alongside technical assistance.

"At Mastercard, we are committed to equipping businesses with the tools and solutions they need to grow, adapt, and thrive in an increasingly digital economy," said Mark Elliott, Division President, Africa, Mastercard.

The Future of SMEs in Kenya: A Digital-First Approach

Kenyan SMEs are proving resilient, adaptive, and eager to embrace digital transformation. As businesses continue integrating cashless payments, seeking financing opportunities, and enhancing cybersecurity, the country’s entrepreneurial ecosystem is set for sustained growth.

Through strategic partnerships, government support, and private sector innovation, SMEs in Kenya are positioning themselves as leaders in digital commerce, reinforcing their role as the backbone of the economy.