15th-Sep-2026 • Reddington Onyango • Financial Inclusion
In Kenya, small and medium enterprises (SMEs) are the backbone of the economy, contributing over 30% of GDP and employing millions. Yet, many still struggle to access affordable financial services. Financial inclusion—ensuring individuals and businesses have access to useful and affordable financial products—is changing this narrative.
Access to finance allows SMEs to invest in growth, manage risks, and seize opportunities. According to the Central Bank of Kenya, only about 30% of SMEs have access to formal credit. This gap hinders their potential to scale and create jobs.
Mobile money has been a game-changer. With over 90% of Kenyan adults using mobile money, platforms like M-Pesa have enabled seamless payments and savings. For SMEs, this means faster transactions, better cash flow management, and a digital trail that can be used to access loans.
Fintech innovations are bridging the gap. Digital lenders like Tala and Branch use alternative data to assess creditworthiness, providing loans to those without collateral. Lipabiz, a business management and payments platform, helps SMEs streamline operations, accept digital payments, and build financial histories.
Moreover, SACCOs and microfinance institutions offer tailored products. For instance, a small agribusiness in Nakuru can join a SACCO to access low-interest loans and savings facilities.
SMEs should leverage available tools: use mobile money for transactions, keep digital records, and engage with fintechs. For example, a retail shop in Mombasa can use Lipabiz to track sales, accept payments, and access working capital.
Financial inclusion is not just about access; it's about empowerment. As more SMEs gain financial footholds, they drive economic growth and community development. The journey is ongoing, but the tools are here. Embrace them, and watch your business soar.
