16th-Oct-2025 • Martin Mwangi • SME Growth
Small and Medium Enterprises (SMEs) are the backbone of Kenya's economy, accounting for over 98% of all businesses in the country. However, many SMEs struggle to grow beyond a certain point. This article aims to provide actionable strategies to help Kenyan SMEs overcome growth barriers and thrive in today's competitive marketplace.
In the digital age, businesses that leverage technology have a significant advantage. This includes adopting cloud-based platforms for operations, implementing digital payment solutions, and utilizing data analytics for informed decision-making.
For instance, Lipabiz Technologies Ltd offers a business management platform and payments platform that streamlines day-to-day operations, reducing administrative burden and allowing SMEs to focus on growth. By digitizing their processes, businesses can improve efficiency, reduce costs, and scale more effectively.
Mobile technology penetration in Kenya is among the highest in Africa, with over 46 million mobile subscribers. This presents a unique opportunity for SMEs to adopt digital payment solutions and reach a wider customer base.
By offering mobile payment options such as M-PESA, businesses can attract tech-savvy customers who prefer digital transactions. Moreover, these platforms provide convenience and flexibility, contributing to improved customer satisfaction and loyalty.
Customer retention is crucial for SME growth. By nurturing strong relationships with existing customers, businesses can increase repeat business and generate positive word-of-mouth referrals.
This can be achieved through various means, such as providing excellent customer service, offering loyalty programs, or regularly engaging with customers through email marketing or social media platforms.
SMEs should constantly look for opportunities to expand their network and collaborate with other businesses. This can include attending industry events, networking sessions, or partnering with complementary businesses to cross-promote products or services.
For example, a local bakery could partner with a café or restaurant to offer its products, thereby reaching a wider customer base and increasing sales.