5th-Nov-2025 • Brendah Akinyi • Mobile Money
Small and Medium Enterprises (SMEs) form the backbone of Kenya's economy, contributing significantly to its GDP. However, managing finances and making transactions efficiently can be a challenge for these businesses, especially given the rural-urban divide and limited access to traditional banking services.
Enter Mobile Money. This digital payment solution has revolutionized financial services across Kenya, offering a convenient, secure, and accessible way for SMEs to manage their finances. According to a report by the Central Bank of Kenya, mobile money transactions accounted for over 90% of all value transferred in the country in 2020.
One prime example is M-PESA, a mobile money transfer service operated by Safaricom. It enables users to send and receive money, pay bills, and even make transactions with merchants. For SMEs, this means no more trips to the bank for cash deposits or withdrawals, saving both time and resources.
But how can SMEs effectively leverage mobile money? Here are some actionable recommendations:
Mobile money allows SMEs to easily manage their cash flow, reducing the risk of errors and providing real-time transaction updates. For instance, a small retail store can use mobile money to receive payments from customers and transfer funds to their bank account instantly.
Mobile money simplifies business-to-business (B2B) transactions, enabling SMEs to pay suppliers, employees, or taxes on time. This not only strengthens relationships but also helps maintain a clean credit history.
With mobile money, SMEs can accept payments from customers nationwide, regardless of their location. This opens up new opportunities for growth and expansion.
Mobile money bridges the gap between formal and informal sectors, providing an opportunity for unbanked SMEs to enter the digital economy. This not only enhances financial transparency but also opens up access to credit and investment opportunities.
In conclusion, mobile money is a powerful tool that can transform the way SMEs manage their finances in Kenya. By embracing this technology, SMEs can streamline operations, enhance efficiency, and foster growth. So why wait? Explore the world of mobile money today!