15th-Feb-2026 • Alice Wambui • Subscription Billing
In today's digital economy, small and medium enterprises (SMEs) in Kenya are continually seeking efficient solutions to streamline their business operations. One such solution that has gained significant traction is subscription billing.
Subscription billing, also known as recurring billing, allows businesses to charge customers on a regular basis for products or services they provide. This model provides numerous benefits to SMEs, particularly in terms of cash flow management and customer retention.
Subscription billing offers predictable revenue streams for SMEs, making it easier to manage cash flow. Unlike one-time transactions, recurring payments provide a steady income that can help businesses plan ahead and invest in growth.
By offering subscription services, SMEs can build stronger relationships with their customers. The convenience of automatic renewals reduces the likelihood of payment defaults and churn, leading to increased customer loyalty and retention rates.
Many Kenyan businesses have successfully implemented subscription billing models. For instance, M-KOPA Solar provides pay-as-you-go solar home systems to customers on a monthly subscription basis. Similarly, online streaming platform Showmax offers a monthly subscription for access to its vast library of TV shows and movies.
According to a report by McKinsey & Company, subscription-based businesses grow 4.5 times faster than those with traditional business models. Moreover, recurring revenue can represent up to 90% of the total revenue for some companies.
If you're considering implementing a subscription billing model for your SME in Kenya, here are some recommendations:
