26th-Feb-2026 • Isaac Kennedy • Kenya Business
Small and Medium Enterprises (SMEs) are the lifeblood of Kenyan economy, contributing significantly to employment and GDP. However, many SMEs face challenges in scaling due to manual processes and limited resources. This is where digital transformation comes into play.
According to a report by Google, Kenya has seen a 90% increase in digital adoption by SMEs since 2018. This shift towards digital platforms is not just a trend but a strategic move that can help businesses streamline operations, reduce costs, and reach wider markets.
For instance, Lipabiz Technologies Ltd offers a business management platform and payments platform for SMEs. By digitizing their accounting, inventory management, and customer relationship management, SMEs can save up to 8 hours per week, freeing up time to focus on growth strategies.
Moreover, digital platforms provide valuable insights through data analytics. This allows businesses to make informed decisions, optimize their operations, and identify new opportunities.
However, the journey towards digital transformation is not without its challenges. SMEs may face issues such as lack of digital skills, concerns about data security, or resistance to change. It's crucial for businesses to address these challenges head-on and seek out solutions that cater to their unique needs.
To embrace digital transformation effectively, consider the following recommendations:
By embracing digital transformation, Kenyan SMEs can unlock their true potential and compete on a global stage. The future is digital, and the time for small businesses to jump on board is now.