1st-Nov-2025 • Brendah Akinyi • Financial Inclusion
Small and Medium Enterprises (SMEs) in Kenya form the backbone of the economy, contributing significantly to the nation's Gross Domestic Product (GDP). However, many of these enterprises face a common challenge: limited access to financial services. This is where financial inclusion comes into play, offering a solution that can propel SME growth and foster economic development.
According to the World Bank, only 65% of adults in Kenya have an account at a financial institution or through a mobile money provider. For SMEs, this translates to fewer opportunities for loans, investments, and savings – all crucial elements for business growth.
The benefits of financial inclusion are far-reaching. With access to credit, SMEs can invest in equipment, expand operations, and create jobs. Savings accounts provide a safety net during economic downturns, while digital payments streamline transactions, reducing costs and increasing efficiency.
Digital financial services, such as mobile money platforms, have revolutionized the landscape of financial inclusion in Kenya. The country leads the world in mobile money penetration, with over 90% of adults using mobile money services, according to a report by GSMA.
Services like M-PESA offer a convenient, secure, and accessible way for SMEs to manage their finances. They can send and receive payments, pay bills, and even access credit – all from the palm of their hand.
Financial inclusion is not just a buzzword, but a key driver of economic growth. By embracing it, SMEs in Kenya can unlock their full potential and contribute even more significantly to the nation's prosperity.