Small and medium enterprises (SMEs) in Kenya are accelerating their adoption of digital payments, leveraging technological innovation and strategic partnerships to drive growth and resilience, according to the Mastercard SME Confidence Index 2024.
With 91% of Kenyan SMEs integrating digital payments, businesses are improving efficiency, customer experience, and financial stability. This shift towards cashless transactions is redefining SME operations, fostering secure payment solutions and enhancing financial inclusion in an increasingly digital economy.
The Impact of Digital Transformation on Kenyan SMEs
“SMEs are the backbone of economies, fueling innovation, employment, and resilience. Digital transformation is unlocking new opportunities, making financial services more accessible and fostering business sustainability,” said Dimitrios Dosis, President of Eastern Europe, Middle East, and Africa at Mastercard.
As Kenyan SMEs continue their digital transformation journey, secure payment solutions, financial services, and strategic collaborations remain crucial for long-term success. “Mastercard is committed to equipping businesses with tools and solutions to grow, adapt, and thrive in an increasingly digital economy,” added Mark Elliott, Division President, Africa, Mastercard.
The Growing Role of Digital Payments in SME Expansion
Kenyan SMEs are increasingly recognizing the benefits of cashless transactions, citing faster transactions, reduced cash handling, and smoother supplier payments as key advantages of digital adoption.
🔹 97% of SMEs plan to introduce seamless, user-friendly payment methods.
🔹 95% aim to accept digital payments across multiple channels.
🔹 70% are prioritizing cybersecurity to ensure safe digital transactions.
Challenges and Opportunities: Credit Access and Cybersecurity
While most SMEs expect stable or increased revenue, challenges such as rising costs (71%) and inflation (68%) persist. To navigate these hurdles:
✅ 76% prioritize access to credit, with 40% seeking business expansion financing and 21% securing funds for daily operations.
✅ Digital transformation has intensified cybersecurity efforts, with SMEs investing in secure digital ecosystems.
✅ SMEs see private sector collaborations and government initiatives as crucial to expanding financial access and business growth.

Most Kenyan SMEs plan to seek credit, majority with the intent to fuel business growth
Kenyan SMEs Remain Optimistic About Growth
Despite economic challenges, 66% of Kenyan SMEs remain confident in achieving stable or increased revenue in 2024. To sustain growth, businesses are focusing on:
✔ Digitization to meet evolving customer needs (95%).
✔ Upskilling employees to drive innovation (95%).
✔ Expanding financial service access for better cash flow management (95%).
Strategic Partnerships Driving SME Digitalization
Mastercard continues to foster SME growth through strategic collaborations:
📌 Mastercard & Safaricom Partnership – In September 2024, Mastercard partnered with Safaricom, enabling 636,000 Kenyan merchants to accept global digital payments via QR codes and NFC terminals.
📌 Mastercard Foundation Fund for Resilience and Prosperity – Launched in April 2024, this $126 million grant program supports Kenyan agribusiness and digital economy SMEs, offering funding between $500,000 and $2.5 million, alongside technical assistance.
The Future of Digital Payments for Kenyan SMEs
As Kenyan SMEs embrace digital finance, Mastercard remains committed to empowering businesses through cutting-edge technology, financial inclusion, and strategic partnerships. By collaborating with governments, financial institutions, and digital platforms, Mastercard is driving the future of secure, efficient, and inclusive digital payments for SMEs in Kenya and beyond.