18th-Oct-2025 • Alice Wambui • Financial Inclusion
In today's interconnected world, financial inclusion has become a vital cornerstone for driving growth and prosperity among Small and Medium Enterprises (SMEs) across the globe. For Kenyan SMEs, financial inclusion holds immense potential to catalyze economic development and foster sustainable growth.
Financial inclusion refers to the expansion of access to appropriate financial products and services that meet the needs of individuals and businesses, including unbanked and underserved segments of the population. In Kenya, SMEs represent a significant portion of the economy but often face barriers in accessing traditional banking services.
According to the World Bank, only 34% of adult Kenyans had an account at a financial institution in 2017, which leaves a substantial number of SMEs without formal access to financial services. This lack of access can lead to operational challenges and limit growth opportunities.
However, the digital revolution has paved the way for new and innovative solutions that promise to bridge the gap in financial inclusion for Kenyan SMEs. One such solution is Lipabiz Technologies Ltd – a business management platform and payments platform designed specifically to cater to the needs of small businesses.
Lipabiz offers an array of services including invoice generation, sales tracking, expenses management, and digital payments, all of which are accessible via a user-friendly mobile application. This solution empowers SMEs to manage their finances efficiently, reduce operational costs, and access credit when needed.
According to a study by the Consultative Group to Assist the Poor (CGAP), digital financial services can significantly boost the growth of Kenyan SMEs. The report indicates that small businesses using digital financial services are 6% more likely to start new ventures, 14% more likely to expand their operations, and 20% more likely to create jobs.
In summary, financial inclusion is a critical driver of growth for Kenyan SMEs. By embracing digital solutions like Lipabiz, small businesses can overcome barriers to accessing traditional banking services, enhance operational efficiency, and unlock new opportunities for expansion and job creation.