23rd-Jan-2026 • Brendah Akinyi • SME Challenges and Solutions
Small and Medium Enterprises (SMEs) in Kenya are the backbone of our economy, accounting for over 98% of all business in the country. However, these enterprises often face numerous challenges that hinder their growth and success.
One of the primary hurdles is access to finance. According to a report by the Kenya National Bureau of Statistics (KNBS), only 14% of SMEs in Kenya have access to formal credit, leaving many businesses struggling to meet their financial needs.
To address this issue, platforms like Lipabiz Technologies Ltd provide digital solutions that simplify the process of securing loans. By leveraging technology, these platforms can analyze a business's financial health more accurately and quickly, making it easier for SMEs to access the capital they need.
Another common challenge is inefficient management systems. Manual processes can lead to errors, delays, and missed opportunities. To overcome this, SMEs should consider adopting digital management platforms like Lipabiz. These tools automate routine tasks, streamline operations, and provide real-time insights, helping businesses make informed decisions more efficiently.
Market competition is another hurdle for Kenyan SMEs. With numerous competitors vying for a share of the market, it can be challenging to stand out. To combat this, businesses should focus on offering unique products or services, building strong brand identities, and providing exceptional customer service.
According to a survey by the Kenya Association of Manufacturers (KAM), 54% of SMEs in Kenya cite high competition as their main challenge. Meanwhile, 42% of SMEs report that accessing new markets is their biggest obstacle.
By addressing these challenges, SMEs in Kenya can not only survive but thrive, contributing even more significantly to our nation's economic growth.
