Kenyan SMEs Look Ahead With Confidence as 70% Expect Revenue Growth

Kenyan small and medium enterprises (SMEs) approach 2026 with a high level of optimism, with 70% projecting a rise in revenues in the next 12 months.

The study highlights Kenya’s dominant position in the region in the adoption of mobile payment methods, with 95% of SMEs accepting mobile money.

Mobile payments are now driving growth in the sector, as 80% of businesses cite easy-to-use payment methods, while another 80% acknowledge that enhanced data and insights are critical to expanding their businesses.

“Kenyan SMEs are among the most digitally fluent on the continent, and their confidence is a reflection of the larger picture of their resilience and aspiration,” said Shehryar Ali, senior vice president and country manager, East Africa, Mastercard.

Mastercard Index SME Resilience, Digitalization, and Customer Focus

Confidence remains high despite challenges like inflation, which hit 77% of SMEs; however, 62% continue to see technological advances and digitalization as positive catalysts, while nearly half (44%) obtained funding to expand their operations during the last year.

“SMEs are the bedrock of Kenya’s economy, and their confidence in the year ahead speaks volumes about their ambition and resilience,” Ali noted.

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Businesses have moved beyond simple transaction processing, with many now prioritizing the acquisition of customer insights.

Sixty per cent of Kenyan SMEs focus on customer experience by prioritizing simple and seamless payment methods, while 44% also emphasize the need for better data for predicting customer needs and optimizing omnichannel strategies.

In 2025, Mastercard increased the number of its merchants on the continent by 49%, bringing the total number of merchants accepting digital payments to more than 650,000.

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Mastercard’s SME Sector Support and Kenya’s Digital Leadership

To strengthen the SME sector, Mastercard has entered into various new collaborations, including those with Safaricom, KCB Bank, I&M Bank, NMB Bank, and Diamond Trust Bank, extending access to Tap to Pay, smartphone-based, tokenisation-enabled payment solutions, business cards, and credit structured for businesses.

“Our mandate is to work alongside them and to help them convert that enthusiasm into lasting prosperity through our solutions, insights, and access to financial products,” said Ali.

The Index, a study conducted across several countries in Eastern Europe, the Middle East and Africa, aims to monitor SME sentiment, key priorities, and business outlook.

Ali stated that Kenya’s early adoption of mobile payments and solid digital infrastructure contributes to its leading position.

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Mastercard Index Shows Kenyan SMEs Maintain Strong Growth Confidence. Credits Master Card X