4th-Dec-2025 • Brendah Akinyi • Banking Technology
In today's digital age, embracing advanced banking technology is no longer an option for small and medium enterprises (SMEs) in Kenya. The rapid evolution of financial services has opened up a world of opportunities for SMEs to improve efficiency, reduce costs, and grow their businesses.
One such area where technology is making a significant impact is in payment solutions. Traditional methods like cash and checks have been replaced by digital payment options such as mobile money, online banking, and point-of-sale (POS) systems.
For instance, M-PESA, a mobile money transfer service, has revolutionized the way Kenyans conduct financial transactions. By leveraging this technology, SMEs can receive payments quickly and securely from customers across the country, improving their cash flow management and reducing the risk of fraud.
Another area where banking technology is proving beneficial for SMEs is in accounting and bookkeeping. Cloud-based accounting software like QuickBooks and Xero enable small businesses to automate financial processes, generate invoices, manage expenses, and track sales - all in real-time.
Moreover, these platforms integrate seamlessly with digital payment solutions, making it easier for SMEs to reconcile transactions and maintain accurate financial records. This leads to better decision-making and increased profitability.
According to a report by the Kenya National Bureau of Statistics (KNBS), the number of SMEs in Kenya has grown from 268,000 in 2015 to over 375,000 in 2020. However, many of these businesses still struggle with financial management and access to credit.
By adopting advanced banking technology, SMEs can streamline their operations, reduce errors, and save time - all of which contribute to increased profitability and sustainable growth.