4th-Nov-2025 • Sheldon Cooper • Financial Inclusion
Small and Medium Enterprises (SMEs) form the backbone of Kenya's economy. However, many SME owners face challenges when it comes to accessing financial services. This issue is often referred to as 'financial exclusion'.
According to a report by the World Bank, about 75% of adults in Kenya do not have an account at a formal financial institution. This number is particularly high among small business owners.
The consequences of financial exclusion can be far-reaching. SMEs struggle to secure loans for growth, manage cash flow efficiently, and invest in necessary resources. Consequently, they may face stunted growth or even closure.
Fortunately, strides are being made towards financial inclusion in Kenya. The government, financial institutions, and tech companies are collaborating to bridge the gap.
One significant step is the widespread adoption of digital financial services. Mobile money platforms such as M-PESA have revolutionized how Kenyans manage their finances. Today, 96% of adults in Kenya have a mobile money account.
For SMEs, this means they can now receive payments, pay bills, and even apply for loans digitally. This not only saves time but also reduces the need for physical visits to banks, which can be costly and time-consuming.
The government is also taking action. The Business Registration Service (BRS) recently introduced a digital platform that allows businesses to register and apply for licenses online, reducing the need for physical interactions with government agencies.
At Lipabiz Technologies Ltd, we are committed to fostering financial inclusion. Our business management platform offers a comprehensive solution for SMEs. Business owners can manage their finances, inventory, and customer relationships all in one place.
Moreover, our platform integrates with major mobile money platforms, allowing businesses to accept payments digitally. This not only simplifies the payment process but also opens up new opportunities for growth.
By leveraging digital solutions like Lipabiz, SMEs can overcome financial exclusion and thrive in Kenya's competitive business landscape.