24th-Feb-2026 • Martin Mwangi • Crossborder Payments
Small and Medium Enterprises (SMEs) in Kenya are increasingly venturing into international markets to expand their customer base and grow their businesses. However, managing cross-border payments can be a complex task. This article aims to demystify the process and provide actionable insights for Kenyan SMEs looking to navigate the global marketplace.
Cross-border payments are essential for Kenyan businesses looking to trade internationally. They facilitate transactions with foreign suppliers, customers, and partners, enabling growth beyond national borders. According to a report by the World Bank, cross-border payments made up approximately 25% of Kenya's GDP in 2019.
Despite their importance, cross-border payments can be fraught with challenges. High transaction fees, currency conversion issues, and delays in transfer times are common problems that can hinder the growth of Kenyan SMEs. These obstacles can be particularly daunting for small businesses with limited resources and expertise.
Technology has played a pivotal role in simplifying cross-border payments. Platforms like Lipabiz offer secure, cost-effective solutions that cater specifically to the needs of Kenyan SMEs. These platforms enable businesses to make and receive payments in multiple currencies, reducing the need for complex currency conversions.
A prime example of a successful cross-border payment solution is M-Pesa. Launched in 2007, this mobile money transfer service has revolutionized the way Kenyans send and receive money. In 2019, M-Pesa processed over 8 billion transactions, demonstrating the demand for efficient, affordable cross-border payment solutions.
