15th-Feb-2026 • Alice Wambui • Financial Inclusion
Small and Medium Enterprises (SMEs) form the backbone of the Kenyan economy, contributing significantly to GDP and employment. However, many SMEs face a common challenge: limited access to financial services.
Financial inclusion refers to providing individuals and businesses with accessible and affordable financial products and services. For SMEs in Kenya, this means having the opportunity to secure loans, savings accounts, insurance, and digital payment solutions, all essential for growth and sustainability.
According to a report by the World Bank, only 41% of adults in Kenya have an account at a financial institution. This leaves a substantial number of SMEs without access to formal financial services, relying on informal networks or high-interest loan sharks.
The lack of financial inclusion impacts SMEs in multiple ways. It hinders their ability to invest in necessary equipment, hire more staff, and manage cash flow effectively. Without access to credit, SMEs are often forced to rely on personal savings or high-interest loans, which can be crippling for businesses.
Digital financial services provide an opportunity for financial inclusion. Platforms like Lipabiz Technologies offer SMEs access to digital payment solutions, invoicing, and credit management tools. These platforms not only make it easier for SMEs to manage their finances but also open up new avenues for securing loans.
The Kenyan government has also taken steps to promote financial inclusion. The National Treasury launched the Business Registration Service (BRS), which streamlined business registration and made it easier for SMEs to access formal financial services.
Collaboration between banks, fintech companies, and the government is crucial in driving financial inclusion. Banks can leverage fintech solutions to reach more customers, while fintech companies can benefit from the stability and credibility of banks.
For instance, Lipabiz has partnered with several banks in Kenya to offer seamless bank transfers through our platform, bridging the gap between traditional banking and digital solutions.
Financial inclusion is more than just a buzzword. It's about empowering SMEs to grow, create jobs, and contribute to Kenya's economic development. By embracing digital solutions, collaborating with partners, and implementing government initiatives, we can ensure that no SME in Kenya is left behind.
