Mastercard Index: 70% Kenyan SME Expect Revenue Growth Despite Inflation Pressures
Kenyan small and medium enterprises are entering the year ahead with a positive outlook, supported by wide use of mobile payments and growing demand for better access to credit.
A new Mastercard SME Confidence Index shows that 66% of Kenyan SMEs are optimistic about their business outlook, while 70% expect revenue to grow over the next 12 months.
Mastercard Index: Mobile Payments Drive Business Flexibility
Kenya’s strong mobile money culture continues to shape how small businesses operate. According to the study, 95% of Kenyan SMEs now accept mobile payments. Mobile payments account for 41% of transaction volume, ahead of card payments at 29% and online acceptance at 39%.
This shows how deeply digital payments have become part of everyday business in Kenya. For many SMEs, mobile payments make it easier to serve customers, manage transactions and adapt to changing buying habits.
Gabriel Swanepoel, Mastercard’s division president for Africa, said Kenyan SMEs are among the most digitally active on the continent and are using digital tools to support growth.
SMEs Seek Credit For Expansion
Despite the positive outlook, businesses are still dealing with pressure from the wider economy. As per the Mastercard Index, inflation was listed by 77% of SMEs as the biggest challenge affecting operations.
Even so, many businesses are planning beyond survival. The report found that 44% of Kenyan SMEs sought external funding in the past year. Among them, 46% wanted credit to grow their business, compared with 13% who needed funding mainly to maintain operations.
The study also shows that SMEs are looking for more than payment acceptance. Around 80% said they need simple and user-friendly payment methods, while 70% want better data, analytics and insights to understand customers and support growth.
Mastercard said its partnerships with Safaricom, KCB Bank, I&M Bank, NMB Bank and DTB are aimed at expanding digital payments and financial services for SMEs.
The Mastercard index findings suggest that Kenya’s SMEs remain under pressure, but are also ready to use digital tools, data and funding to unlock their next phase of growth.
