Kenya’s small and medium enterprises (SMEs) are looking to the year ahead with confidence, with 66% optimistic about their business outlook and 70% expecting their revenue to grow over the next 12 months.
A MasterCard study shows that Kenyan SMEs are drawing on their position as early adopters of mobile money to stay agile and keep growing through a period of economic change.
The MasterCard SME Confidence Index is a multi-market study that captures the sentiment, priorities and growth outlook of SMEs across Eastern Europe, the Middle East and Africa.
Kenya’s frontrunner in mobile money, and leadership is clear in the findings. Almost all SMEs (95%) now accept mobile payments, which make up 41% of all transaction volume and outpace both card (29%) and online (39%) acceptance.
This deep digital fluency is giving businesses the flexibility to adapt quickly and serve their customers wherever they choose to pay.
Kenya’s SMEs embrace digital tools
“Kenyan SMEs are some of the most digitally fluent on the continent, and their optimism reflects a wider story unfolding across Africa. Businesses here are showing the rest of the region what is possible when entrepreneurs embrace digital tools and build on them with ambition. As they look to scale, our role is to help them turn that momentum into lasting growth, through the right payment solutions, insights and access to finance,” said Gabriel Swanepoel, division president, Africa, MasterCard.
This optimism is reflected in how Kenyan entrepreneurs are planning for growth. Almost half (44%) sought external funding in the past year, and most of those are looking for credit to expand their business rather than simply sustain it.
“SMEs are the engine of Kenya’s economy, and their confidence in the year ahead speaks volumes about their resilience and ambition. Kenyan businesses have built one of the most advanced mobile payment cultures in the world, and they are now ready for the next step, turning everyday transactions into the data, insights and access to capital that help them grow. At MasterCard, we are proud to work alongside our partners to give these businesses the tools to scale and thrive,” said Shehryar Ali, senior vice president and country manager, East Africa, MasterCard.
Confidence through a changing economy
Kenya’s SMEs have navigated a demanding year with characteristic resilience. While inflation was cited by 77% of businesses as the most significant pressure on their operations, sentiment about the future remains firmly positive. Technological progress and digitalization stood out as a key positive driver for 62% of businesses, and that momentum is carrying through into their plans for the year ahead, with 70% projecting revenue growth and 66% feeling confident about what comes next.
From connectivity to customer intelligence
With such a strong foundation in digital payments already in place, Kenyan SMEs are setting their sights on the next competitive advantage. They identify simple, seamless and user-friendly payment methods (80%) and access to better data, analytics and insights (70%) as their top requirements for future growth. The appetite is shifting from accepting payments to understanding customers, so businesses can anticipate changing needs and sharpen their Omni channel strategies.
A strong appetite for growth capital
Kenya’s entrepreneurs are actively seeking the capital to match their ambitions. Almost half (44%) sought external funding in the past year, and of those, far more are looking for credit to grow their business (46%) than to maintain it (13%). With many businesses still managing expenses outside formal commercial tools, there is a clear opportunity to connect them with dedicated business cards and structured credit that can provide the working capital they need to turn growth projections into reality.
Supporting SMEs through partnerships
MasterCard is committed to working with partners across Kenya to give SMEs the tools and resources they need to put these ambitions into action.
Key initiatives include:
- A collaboration with Safaricom to enhance payment acceptance across the M‑PESA ecosystem, supporting more than 636,000 merchants.
- The expansion of Tap to Pay, enabling smartphone-based acceptance, alongside tokenisation-based wearables for secure transactions
- Collaborations with KCB Bank, I&M Bank, NMB Bank and Diamond Trust Bank (DTB) to scale digital payments and financial services.
These efforts are contributing to measurable impact, including a 45% increase in Mastercard’s acceptance network across Africa, helping more SMEs participate in the digital economy.
As Kenya’s SMEs build on their confidence and digital strength, the MasterCard SME Confidence Index points to both their resilience and their readiness to seize new opportunities. By combining digital innovation, partnerships and capability building, MasterCard remains focused on supporting SMEs as they scale and contribute to a more inclusive and dynamic digital economy.
