27th-Oct-2025 • Maxwel Odira • Mobile Money
Small and medium enterprises (SMEs) in Kenya are thriving thanks to a digital revolution that's making business operations more efficient and cost-effective. One such game-changer is mobile money, which offers unparalleled convenience for businesses across the nation. Let's delve into how mobile money can boost your SME's growth.
Mobile money refers to financial transactions carried out using a mobile device. In Kenya, the most popular mobile money service is M-Pesa, developed by Safaricom in 2007. Since its inception, M-Pesa has enabled millions of Kenyans to send and receive money, pay bills, and make purchases without needing a traditional bank account.
1. Increased Efficiency: Gone are the days when business owners had to physically visit banks to deposit or withdraw cash. With mobile money, you can manage your finances at any time, from anywhere, reducing valuable time spent on administrative tasks.
2. Reduced Costs: Mobile money eliminates the need for bank fees and other charges associated with traditional banking methods. This translates to significant savings for SMEs, which can then be reinvested in business growth.
Take, for instance, a small grocery store in Nairobi. By adopting mobile money, the owner eliminated costs associated with maintaining a bank account and was able to save 20% on transaction fees. These savings allowed her to invest in inventory expansion, ultimately increasing sales by 15%.
According to the Central Bank of Kenya, mobile money transactions accounted for 78% of all retail transactions in 2020. This underscores the growing importance of mobile money for SMEs seeking to remain competitive in today's digital landscape.