2nd-Jan-2026 • Faith Chebet • Crossborder Payments
Small and Medium Enterprises (SMEs) in Kenya are increasingly looking beyond local borders to expand their reach. However, the complexities of crossborder payments can pose significant challenges. This article aims to demystify these intricacies and provide a step-by-step guide for SMEs to navigate the world of global transactions.
Crossborder payments are crucial for SMEs seeking to grow their customer base, source supplies, and invest in overseas opportunities. Data from Kenya National Bureau of Statistics shows that export earnings increased by 18.7% in 2021, underscoring the potential benefits for Kenyan businesses operating globally.
Common obstacles include high transaction fees, lengthy processing times, and compliance with foreign regulations. These issues can lead to cash flow problems, lost opportunities, and increased operational costs.
Selecting a reliable payment platform is essential for SMEs navigating crossborder transactions. Look for providers offering low fees, quick processing times, and robust security measures. Lipabiz Technologies Ltd, for instance, provides an all-in-one business management and payments platform that simplifies crossborder payments for Kenyan businesses.
Compliance with foreign regulations is crucial to avoid fines, legal issues, and damaged reputation. Consult with a legal expert to understand the requirements of your target markets and ensure you meet all necessary standards.
Digital solutions can streamline crossborder payments, reducing costs and increasing efficiency. Mobile money platforms like M-PESA and digital payment services like Lipabiz offer SMEs a convenient way to send and receive payments across borders.
Imagine a Kenyan clothing manufacturer looking to export their products to Tanzania. By partnering with a reliable payment provider, complying with local regulations, and leveraging digital solutions, they can easily manage crossborder transactions, expand their market reach, and grow their business.