By Benadeta Mwaura - Reporter
Kenya, June 19, 2026 - Seven out of 10 small and medium-sized enterprises in Kenya expect their revenues to grow or remain stable in 2026, reflecting renewed business confidence despite persistent concerns over inflation, rising operating costs and limited access to affordable credit.
The findings are contained in the latest edition of the Mastercard SME Confidence Index, which shows that Kenyan businesses are increasingly turning to digital payments, technology adoption and strategic partnerships to strengthen resilience and unlock growth opportunities.
According to the survey, 66% of SMEs expect to maintain or increase their revenues this year, underlining optimism among business owners as Kenya's economy benefits from easing inflation, improved exchange rate stability and growing digital adoption.
"Small and medium enterprises are the backbone of economies, driving innovation, employment and resilience," said Dimitrios Dosis, President of Eastern Europe, Middle East and Africa at Mastercard.
"As digital transformation accelerates, SMEs are unlocking new opportunities through digital payments and financial inclusion. Their ability to adapt and grow in a rapidly evolving business landscape reflects the strength of an ecosystem that prioritises access to finance, digital enablement and sustainable growth," he added.
The survey found that 91% of Kenyan SMEs now accept digital payments, with many citing improved efficiency, faster transactions and enhanced customer experience as key drivers behind the shift.
Looking ahead, 97% of SMEs plan to offer simpler and more user-friendly payment methods, while 95% intend to expand digital payment acceptance across multiple channels. Another 70% said they are prioritising cybersecurity and secure payment processing as digital transactions become more widespread.
However, business owners continue to grapple with rising costs and inflationary pressures. The survey found that 71% of SMEs identified increasing costs of goods and services as a major challenge, while 68% cited inflation as a key concern.
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Access to finance also remains a critical issue, with more than three-quarters of SMEs planning to seek credit to support operations and expansion. Of those seeking financing, 40% said they need funding to grow their businesses, while 21% require capital to sustain day-to-day operations.
"As SMEs in Kenya continue to embrace digital transformation, access to secure payments, financial services and strategic partnerships remains key to their success," said Mark Elliott, Global Products and Solutions Lead for the Middle East and Africa at Mastercard.
"At Mastercard, we are committed to equipping businesses with the tools and solutions they need to grow, adapt and thrive in an increasingly digital economy," he added.
The positive outlook aligns with broader economic projections for Kenya, with the World Bank forecasting GDP growth of about 4.9% in 2026, supported by stable inflation, stronger domestic demand and continued expansion of the digital economy.
SMEs play a crucial role in Kenya's economy, accounting for the majority of businesses and a significant share of employment, making their performance a key indicator of the country's economic health.