7th-Nov-2025 • Alice Wambui • Payments
In today's fast-paced world, adapting to digital payment methods is no longer an option but a necessity. Especially for Small and Medium Enterprises (SMEs) in Kenya, embracing modern payment solutions can revolutionize the way you manage your business finances.
According to the Central Bank of Kenya's 2020 Quarterly Credit Review report, SMEs account for approximately 98% of all businesses and employ over 70% of the total workforce. With such a significant impact on our economy, it's crucial that these businesses have access to efficient payment systems.
Luckily, the Kenyan market is rich with innovative solutions designed specifically for SMEs. Here are some noteworthy platforms:
Lipabiz Technologies Ltd offers a business management platform and payments platform that simplifies the process of managing finances and customer relations. With Lipabiz, SMEs can easily create invoices, manage inventory, process payments, and track transactions all in one place.
M-PESA is a mobile money transfer service owned by Safaricom, the largest telecommunications company in Kenya. With over 35 million active users as of Q1 2021, M-PESA enables SMEs to receive and send payments, pay bills, and even conduct business transactions on their mobile phones.
Tala is a digital lending platform that offers instant loans to individuals and businesses. The app uses AI and machine learning algorithms to assess creditworthiness based on a user's phone data, bank transactions, and social media activity. SMEs can use Tala for short-term financing needs, which can be particularly helpful during cash flow crunches.
When choosing the best payment solution for your business, consider factors such as convenience, security, cost, and user-friendliness. It's also essential to assess your specific needs, as different platforms cater to various industries and transaction volumes.
By adopting digital payment solutions, SMEs in Kenya can reduce the time spent on manual transactions, lower costs associated with cash handling, and ultimately improve overall efficiency. Embrace these innovative tools to stay competitive and thrive in today's digital landscape.