Digital payment gaps continue to weigh on Kenyan SMEs, Visa report finds

Nairobi, Kenya - According to a recent Visa report, Kenyan small and medium-sized enterprises (SMEs) are encountering operational and administrative obstacles despite the increasing use of digital payments. The Pay and Get Paid 2026 report reveals that while most surveyed businesses engage in digital payments, only 19 percent utilize integrated platforms that merge payment services with their daily business management tasks.

This fragmentation in business management systems is limiting operational efficiency and access to financial resources.

The report highlights that 30 percent of SMEs have difficulties tracking outstanding invoices, 27 percent face challenges in organizing payroll records, and 26 percent struggle with preparing financial reports. These administrative burdens are impeding business productivity and financial visibility. Moreover, awareness and perceptions are emerging as significant barriers to adopting integrated business solutions.

Around 20 percent of the respondents were unaware that such platforms exist, while 14 percent believed their businesses were too small to benefit from them. Additionally, 12 percent did not perceive sufficient advantages to warrant their adoption.

Despite these challenges, there is a strong demand for integrated solutions, with 81 percent of the surveyed businesses finding an all-in-one payment and business management platform appealing. Businesses that already employ such platforms have reported an 85 percent satisfaction rate, with 81 percent indicating that these tools have improved operational efficiency by reducing the time and effort spent on managing business activities.

Visa's Vice President and Head of East Africa, Anne Kinuthia-Otieno, emphasized that connecting payments with business operations can help financial institutions better understand the needs of smaller enterprises. She stated, “As digital transactions become part of everyday commerce, the value for SMEs increasingly lies in what those payments can enable after the transaction.”

Integrated platforms have the potential to build a more comprehensive, data-informed view of SME needs, paving the way for more personalized support and, where applicable, tailored financing solutions to assist businesses in managing working capital and fostering growth.

The study, conducted through face-to-face interviews with business owners and financial decision-makers across 11 markets during March and April 2026, encompassed 256 SMEs in Kenya.